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Asset-Based Business Line of Credit

Leverage your receivables, inventory, or equipment to access flexible working capital—on your terms, when you need it.

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Key Highlights
A ready source of capital
Line Amount
$100K to $10M
Revolving
Draw funds as-needed
Time to Fund
2 weeks to 3 months
What is it?
Credit backed by what you’ve built

An asset-based business line of credit gives you ongoing access to capital, secured by the value of your business assets, like receivables, inventory, or equipment.

Instead of relying on your credit score, your borrowing power is tied to what your business already owns. As your assets grow in value, so does your available credit. Draw what you need, when you need it, while only paying interest on what you use.

Perfect for businesses with strong B2B receivables or inventory, this flexible line of credit helps you manage cash flow, handle seasonality, or fund new contracts without equity dilution. If you don’t want to collateralize your assets, we have cash-flow funding options, too.

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why get it?
Unlock the value of your assets

Keep things moving by leveraging assets to secure flexible growth capital.

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Leverage what you own

Turn the value of your assets into working capital you can use now.

Draw what you need

Access capital as needed and only pay interest on what you use.

No equity or dilution

Grow your business without giving up ownership or control.

Stronger approvals

Qualify based on asset value, not just credit history.

Business line of credit vs Cash flow financing

What’s the difference between a line of credit vs cash flow financing? Here’s a quick breakdown:

feature
feature business line of credit Cash Flow financing
Type Revolving credit Lump sum funding
Type
feature: Type
business line of credit: Revolving credit
Cash Flow financing: Lump sum funding
Payments Weekly and monthly Weekly and monthly
Payments
feature: Payments
business line of credit: Weekly and monthly
Cash Flow financing: Weekly and monthly
Flexibility Withdraw as needed Fixed funding, flexible repayment
Flexibility
feature: Flexibility
business line of credit: Withdraw as needed
Cash Flow financing: Fixed funding, flexible repayment
Cost Interest only on outstanding amount Flat cost, no prepayment penalties
Cost
feature: Cost
business line of credit: Interest only on outstanding amount
Cash Flow financing: Flat cost, no prepayment penalties

Funds as you need them, when you need them

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your eligibility
3 checks and you’re in

We focus on what your business has built—not just your credit score. If growth is being held back by limited financing options, an asset-based term loan may be your best move.

  • 1+ year in business
  • $500,000+ in annual revenue
  • Valuable assets, like receivables, inventory, or equipment
Check Eligibility

Not sure if your assets qualify? Our advisors can let you know in minutes.

What do I need to PROVIDE?
Required documents

Have this information on hand and you’re all set

  • Business formation docs
  • Personal financial statements
  • Business financial statements
  • Business plan
  • Aging A/R and A/P reports
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FAQs

An asset-based line of credit gives you access to working capital secured by your business assets, like receivables, inventory, or equipment. Your available credit limit is tied to the value of those assets (e.g., up to 85% of receivables or 50% of inventory). You can draw funds as needed, repay them, and draw again—making it ideal for managing cash flow or funding growth on your terms.

Compared to cash flow lines of credit, asset-based loans require more documentation and ongoing reporting. You’ll need to regularly verify the value of your receivables, inventory, or other pledged assets. If your asset quality fluctuates, your credit limit might too. And since the line is secured, your assets are at risk if you default. However, asset-based lines can offer significantly higher credit limits—especially if your financials don’t qualify for unsecured financing.

It depends. If your business has strong assets but limited access to unsecured credit, then it might be a good avenue for your company to access capital. On the other hand, if your business can’t/doesn’t want to pledge assets, then a cash flow line of credit might be the better option. By pledging collateral, you may qualify for larger credit limits and more flexible terms without giving up equity. It’s a strategic way to put your assets to work as long as you have solid repayment plans and reliable receivables or inventory.

You get a credit line secured by your receivables, inventory, or equipment. You draw funds as needed and repay over time. Your available credit adjusts with your asset value.

At National Business Capital, we require $500,000 in annual revenue and 1 year in business, along with sufficient asset coverage. Businesses that generate consistent revenue and have valuable assets, like accounts receivable, inventory, or equipment, see the strongest approvals. Asset-based lending is particularly useful for wholesalers, manufacturers, distributors, and service-based companies with large B2B invoices.

Interest rates vary based on the type of collateral, your asset quality, business performance, and lender risk. In general, rates for an asset-based line of credit range from 7% to 15% but can vary based on the structure. At National Business Capital, we help match you with the most competitive offer based on your goals and qualifications.

Let’s talk funding
Get the capital you need to grow your business

Let’s review your assets and find out if you qualify—no pressure, no cost.

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