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Asset-Backed Financing

Put productive assets behind the financing.

Use eligible receivables, inventory, or equipment to support business capital, with availability based on the assets and repayment capacity.

Explore Asset-Backed Financing
Product Overview
StructureSupported by eligible assets
Typical useLeverage existing business assets
RepaymentVaries by structure
CollateralReceivables, inventory, equipment, or property
How it works

Asset to Availability.

AssetReceivables, inventory, equipment

What the business already owns.

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Eligible valueWhat qualifies

Aged or ineligible balances are excluded.

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Borrowing baseAdvance rate applied

A percentage of eligible value supports the facility.

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AvailabilityWhat you can draw

Recalculated as collateral changes.

Asset-backed financing

Financing Supported by Business Assets

Use vehicles, equipment, receivables, or inventory to support financing when the strength of the business sits in its assets.

Vehicles & equipment

Assets That Support Financing

Service vehicles, shop equipment, and other business assets can support financing structured around their value.

Assets that may support financing

  • Real estate
  • Equipment
  • Receivables
  • Inventory
  • Other eligible business assets

How the review works

Asset-backed structures involve reviewing ownership, valuation, and lien position for the assets used to support financing. The specifics depend on the asset type and the program.

  • Ownership of the asset is confirmed
  • The asset is valued
  • Lien position is established
  • Underwriting reviews the overall profile
Eligibility, valuation, and terms depend on the assets involved and are subject to underwriting and approval.
Payment planning

Borrowing Base & Advance Rates.

Enter the amount, annual rate, and repayment term to calculate the scheduled payment.

Payment Calculator
Monthly payment
$0

Enter an amount, annual rate, and term.

Calculated from your inputs. Excludes fees and any balloon payment; actual financing terms are set in the written offer.

Underwriting focus

Valuation & Lien Position.

Not every factor applies to every request, but these are the areas that commonly shape a decision.

Revenue & cash flowHow consistently money moves through the business.
Operating historyTime in business and track record.
Existing obligationsCurrent financing and debt service load.
Credit profileBusiness, and where applicable personal, credit.
CollateralAvailable assets or equity, where the structure uses them.
Use of fundsWhat the capital is for and how it supports the business.
Banking activityDeposits, account activity, and recent business statements.
IndustryThe business model and the industry it operates in.

Typical situations

  • Financing against accounts receivable
  • Leveraging inventory
  • Using equipment as support
  • Real-estate-supported structures
Potential advantages
  • Puts existing assets to work
  • Can scale with the asset base
  • May fit businesses with strong assets and uneven cash flow
Important considerations
  • Eligibility and valuation depend on the asset
  • Monitoring or reporting may apply
  • Advance considerations vary and are confirmed in underwriting
When another structure may fit

Asset-backed structures rely on collateral value rather than cash flow alone. Where cash flow is the stronger story, a term loan or line may fit better.

Keep exploring

Related financing solutions

Equipment Financing

When the asset is being purchased rather than leveraged.

Explore

Business Line of Credit

When you need revolving access rather than a borrowing base.

Explore

Commercial Real Estate

When property is the primary collateral.

Explore
Before you apply

Prepare the Collateral Schedule

  • Receivables aging or inventory listing
  • Equipment schedule with values
  • Any existing liens and their position
  • Recent valuations where available
Related secured structures
Equipment Financing Commercial Real Estate
FAQ

Frequently Asked Questions

Eligible business assets such as accounts receivable, inventory, equipment, or property, depending on the structure and program.
It depends on the asset type, value, and condition, confirmed through underwriting. Different assets are evaluated differently.
Asset-backed structures rely on collateral value, while a term loan leans more on overall cash flow. Where cash flow is the stronger story, a term loan may fit better.
It can. Because it is tied to the asset base, availability may grow as eligible assets such as receivables or inventory grow, subject to underwriting.

Have a question about your business? Start a financing request and our team will follow up.

LIVC Business Intelligence

Review the terms behind the decision.

Product structures, repayment considerations, and dated policy updates in one place.

View relevant research

Start with the assets.

Provide the asset details, existing liens, and use of funds for an asset-backed financing review.

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