How much can I borrow against my assets?

Indicatively, around 80% against eligible receivables, 35-50% against finished-goods inventory, and up to 4× MRR for SaaS recurring-revenue lines. Advance rates depend on asset quality and are subject to field audits and diligence.

An MRR line is a revolving credit facility for SaaS businesses sized on monthly recurring revenue, indicatively up to 4× MRR for companies with $500k+ MRR, high recurring revenue, and low churn. It typically funds customer acquisition and working capital.

What assets can be financed?

Trade receivables, finished-goods inventory, equipment, recurring revenue contracts, and funds in transit (used by marketplaces and money-transfer businesses). Assets generally need to be free of existing charges.

Asset-backed financing

Asset-Backed Lending

Asset-backed lending (ABL) is financing secured against specific balance sheet assets: receivables, inventory, equipment, recurring revenue contracts, or funds in transit. Availability is set by a formula, for example an 80% advance on eligible receivables, and the facility revolves as the assets turn.

Because the lender's risk is collateralised, asset-backed lines are usually cheaper than term loans and scale automatically: as the business grows, eligible assets grow, and availability grows with them. Variants cover most asset types, from accounts receivable lines and inventory finance (35-50% advance on finished goods) to MRR lines for SaaS businesses and in-transit cash lines for marketplaces and money-transfer businesses.

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Indicative ticket

$5M-$200M

Availability: Formula-linked: e.g. ~80% advance on eligible receivables, 35-50% on finished-goods inventory, or up to 4× MRR for SaaS lines
Structure: Revolving, based on availability; interest due monthly, principal at maturity
Covenants: 1-2 covenants: P&L and/or balance sheet tests
Security: Senior secured over all assets; inventory verified by field audit
Pricing: Arrangement fee, interest, early repayment fee, non-utilisation fee

Indicative only and subject to diligence. Actual terms depend on your business and the market.

Business profile

Who asset-backed lending is for

$5M+ revenues, likely Series B or beyond
Leverageable balance sheet assets with no existing charge
On a path to breakeven (or able to drive to it)
May or may not require additional equity

Debt purpose

What the capital is for

Working capital
Liquidity and short-term cash swings
Funding stock ahead of demand
Financing customer acquisition (MRR lines)

Benefits

Why borrowers choose it

Committed line at lower cost than term loans
Scalable: availability increases as the business grows
Revolving: draw and repay at the company's discretion
Typically no warrants

When not to use it

An honest word of caution

!When long-term capital is required
!To support sustained losses
!For MRR lines: where there is high churn or risk in service delivery

How it compares

Versus cashflow lending, ABL is sized on assets rather than EBITDA, so it can unlock more for asset-heavy borrowers at a lower price. Versus a revolving credit facility, availability follows a borrowing-base formula rather than being committed unconditionally.

Terms, criteria, and sizing shown are indicative, not exhaustive, and subject to further diligence on the company and its assets.