Acquisition Finance For Sponsors

Asset-Based Acquisition Financing

Asset-based acquisition financing funds a business purchase with loans secured on the target's receivables, inventory, equipment and sometimes real estate. Financely structures the asset-based facility, often alongside a cash flow term loan or junior capital, and places it with asset-based lenders on a fee-based basis.

Who Is This For?

  • Buyers of distribution, manufacturing, wholesale and other asset heavy businesses
  • Sponsors whose target has strong collateral but uneven or cyclical earnings
  • Acquirers who need a working capital revolver in place at closing
  • Buyers whose cash flow lenders will not size the full purchase price

What Can Be Financed?

  • ABL revolver with availability set by a borrowing base on eligible receivables and inventory
  • Equipment term loan secured on machinery and fleet, based on appraised values
  • Real estate term loan where the target owns its facilities
  • Combined structures pairing an ABL with a cash flow loan, mezzanine or seller note

What Lenders Typically Look For

These are typical criteria, not hard limits. Every deal is reviewed on its merits.

  • Receivables aging, customer concentration and dilution history
  • Inventory reports and the ability to support an inventory appraisal
  • Equipment lists with condition and ownership details
  • Clean title to collateral and no conflicting liens at closing
  • Monthly reporting capability for a borrowing base

How Does the Process Work?

  1. Submit your deal. Send your LOI, target financials, aging reports and asset lists through the quote form.
  2. Review and quote. We assess the collateral and reply with a fee-based engagement quote and a proposed structure.
  3. Package. We prepare the lender materials and coordinate field exams and appraisals.
  4. Placement. We approach matched asset-based and cash flow lenders.
  5. Term sheets. We compare advance rates, pricing, covenants and reporting terms.
  6. Close. We coordinate diligence, lien searches and documentation to funding.

Related pages

Ready to Finance Your Acquisition?

Send your LOI, financials and collateral reports and we will reply with a fee-based quote and a proposed structure.

Request A Quote

Frequently Asked Questions

What is a borrowing base?

A borrowing base is the amount you can draw under an ABL revolver, calculated from eligible receivables and inventory after the lender's advance rates and reserves.

Can an ABL fund the whole purchase price?

Sometimes, but often it covers part of it. Many deals pair the ABL with a term loan, seller note or equity to complete the funding.

Do asset-based lenders look at cash flow?

Yes. Collateral drives availability, but lenders still review earnings and the ability to service the debt.

What are field exams and appraisals?

They are third party reviews of collateral that ABL lenders require before closing. The cost is paid by the borrower directly to the provider.

Is Financely a lender?

No. Financely structures the financing and places it with third party lenders who make their own credit decisions.

How is your work paid for?

Financely charges a deal review fee, then a retainer and a success fee agreed in writing before work begins. You receive a quote after we review the deal.

Disclaimer: Financely is an advisory and structuring platform. We do not guarantee issuance, lender approvals, or transaction closing outcomes. All mandates are subject to underwriting, KYC and AML checks, compliance review, counterparty acceptance, and final provider decisions. This page is provided for commercial information only and does not constitute legal, tax, or investment advice.