CAPITAL STRUCTURED AROUND YOUR BUSINESS
Asset-Based Lending & Factoring
Receivables and inventory can tie up cash while a business continues to grow. SW Capital Advisory helps owners evaluate when asset-supported financing may address that timing problem and how the reporting, customer, and operational requirements would work in practice.
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A BRIEF VIDEO OVERVIEW
Asset-Based Lending & Factoring explained
A concise introduction to how asset-based lending & factoring may work, when it may fit, and the key considerations business owners should understand before moving forward.
Recording soonMap the potential cash gap created by operating expenses, customer payment timing, inventory, and supplier terms.
Open the calculator →When this path may fit
- A business sells to other businesses on payment terms.
- Receivables or inventory are growing faster than available cash.
- Eligible business assets may support a facility beyond a conventional cash-flow approach.
What deserves a closer look
Asset-based lending is borrowing supported by eligible collateral and may use a borrowing base that changes over time. Factoring generally involves selling eligible receivables. Compare eligibility exclusions, reserves, customer concentration, reporting, collections arrangements, fees, and recourse. Not every invoice or inventory item will qualify, and existing liens may affect access.
What to prepare
Start with a brief overview. The exact documentation depends on the transaction and financing source.
- Detailed accounts-receivable and accounts-payable aging
- Customer concentration and payment-history information
- Inventory reports where relevant
- Current financials, existing liens, and financing agreements
Do not submit Social Security numbers, bank credentials, tax returns, or full financial account details through the website inquiry or ordinary email. Arrange an appropriate secure document channel before sharing sensitive records.
Common questions
Are factoring and a receivables-backed loan the same?
No. Factoring generally purchases receivables; a loan uses collateral to support borrowing. The contracts, customer interaction, and allocation of collection risk can differ materially.
Can the available amount change?
Yes. Eligibility, collections, concentration limits, reserves, and collateral values can change the amount available. Review how that calculation fits daily operations.
Further reading
External resources explain financing concepts. Links do not imply a lending relationship, endorsement, or availability through SWCA.
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Related resources for asset-based lending & factoring
Use the tool, practical guidance, and case context below to understand this capital path from more than one angle.