Asset Based Lenders Checklist

Asset Based Lenders Checklist

Asset Based Lenders Checklist

No fluff. If you want an ABL approved, give credit the controls and reports they live by. Use this list to build a lender-ready file for receivables, inventory, and equipment backed facilities.

Outcome: a clean, verifiable pack that supports advance rates, reserves, and a borrowing base lenders will fund against.

What Credit Looks For First

Audited numbers or strong reviews
Last 2 years financials, YTD with comparatives, covenant history if any.
Quality of collateral data
AR aging, inventory roll forward, perpetuals, and tie-outs to the GL without gaps.
Control path
Account control, title or warehouse control, insurance endorsements naming lender.
Legal clean-up
UCC or local filings, lien searches, intercreditor, landlord waivers, no hidden seniors.

Master File Checklist

Item Why lenders care Format to provide
Audited FS and YTD pack Sets baseline cash generation and leverage PDF audited, Excel management accounts with GL trial balance
13-week cash flow Liquidity map vs borrowing base cycles Excel model with assumptions tab
Customer and vendor master Concentrations and related party risk CSV export with IDs, terms, credit limits
Latest field exam or QoE if any Independent view on controls and data quality PDF reports and management responses

Accounts Receivable Collateral Checklist

  • AR aging by customer 0-30, 31-60, 61-90, 91-120, 120+, with totals matching GL
  • Sales and cash receipts roll forward with write-offs and credit memos broken out
  • Top 20 customers with terms, dispute status, and concentrations as percent of AR
  • Ineligibles schedule foreign, intercompany, consignment, >90 days, contra, cross-aged
  • Dilution analysis credit notes, returns, chargebacks as percent of sales by month
  • Customer contracts or POs for large balances and any take-or-pay clauses
  • Lockbox or account control agreement, remittance instructions, bank account details
  • Trade credit insurance policy if used, limits, exclusions, loss payee endorsements

Inventory Collateral Checklist

  • Perpetual inventory with SKU, location, quantity, unit cost, extended value
  • Aging by SKU new, 31-90, 91-180, 181-365, 365+, with scrap and obsolescence reserves
  • Monthly roll forward beginning, purchases, production, issues, write-offs, ending
  • Third party storage agreements and landlord waivers or terminal acknowledgments
  • Collateral Management Agreement or warehouse receipts if title control is used
  • Appraisal or NOLV report with methodology and haircuts by category
  • Insurance binder cargo, stock throughput, and endorsements naming lender as loss payee

Machinery and Equipment Collateral

  • Fixed asset register with serial numbers, location, purchase date, book value
  • Independent appraisal orderly and forced values, inspection photos if available
  • Lien search results and payoff letters for any existing equipment liens
  • Maintenance logs and OEM service contracts that protect value

Borrowing Base Rules To Pre-Agree

Element Typical approach
AR advance rate 70 to 90 percent on eligible, net of ineligibles and dilution reserve
Inventory advance rate 25 to 65 percent of NOLV by category, caps by site and SKU
Reserves Dilution, slow pay, returns, taxes, liens, rent, and availability blocks
Concentration limits Per customer, SKU, location, and foreign exposure with caps and haircuts
Clean downs Periodic full paydown or turn test to prove convertibility to cash

Legal and Control Documents

Security and priority
UCC or local filings, lien searches, intercreditor, subordination, negative pledge language.
Control of cash
Deposit account control agreements, lockbox, blocked account letters, waterfall schedules.
Control of goods
Warehouse or terminal control, CMAs, warehouse receipts, landlord waivers, access rights.
Insurance and risk
COIs and endorsements property, stock throughput, liability with lender as loss payee.

Reporting Cadence That Keeps Availability Live

Report Frequency Owner
Borrowing base certificate with back-up Weekly or monthly Controller or CFO
AR aging and roll forward Weekly AR manager
Inventory perpetual and roll forward Weekly Inventory control
Covenant and KPI pack Monthly or quarterly Finance
Field exam and appraisal updates Per credit agreement Lender with borrower support

Red Flags That Kill Advance Rates

Unreconciled tie-outs
AR aging and perpetuals do not match the GL. Fix the bridge or expect heavy reserves.
Messy eligibility rules
Complicated exceptions and side deals make ineligibles spike. Keep rules simple and objective.
Weak cash control
No lockbox or ACA. Lenders will cut availability until control is in place.
Storage risk
No landlord waiver or terminal rights. Expect a storage reserve or a no.
Want this packaged for credit review without back-and-forth? Send your data room link and we will return a lender-grade file with borrowing base, reserves map, control docs, and a draft reporting cadence.

Get Your ABL File Ready

Share your AR and inventory exports, storage agreements, insurance binder, and last field exam if any. We will respond with advance rate options and a closing plan.

Start the Process

This checklist is informational. Any facility is subject to lender due diligence, KYC and AML checks, sanctions screening, and independent credit approval. Advance rates and pricing vary by collateral quality, control strength, and market conditions.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.