Asset-Based Lending
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Catalyst Private Credit > Asset-Based Lending
Catalyst asset-based facilities give operating businesses working capital secured by what they already own: receivables, inventory and equipment.
Who asset-based lending is for. Companies that are growing faster than their bank line, companies emerging from a weak year, companies completing an acquisition or a management buyout, and companies in seasonal or project-driven industries all benefit from asset-based lending. The facility expands with the collateral base rather than being capped by last year's financial statements.
How the facility works. Availability is calculated from a borrowing base: a percentage of eligible receivables and inventory, plus a term component against appraised equipment where applicable. Reporting is monthly and designed to be manageable for a small finance team. As the business stabilizes, many borrowers transition back to a conventional lender, and we structure the facility to make that transition straightforward.
- Revolving lines against receivables and inventory
- Term loans against equipment and fixed assets
- Availability that grows with the business
- Suitable for growth, turnaround and transition
- Monitoring that is practical, not punitive
- Facilities from $1 million to $10 million (CAD)
From a monthly borrowing base: a percentage of eligible receivables and inventory, plus a term component against appraised equipment where applicable.
A monthly borrowing base certificate with an aged receivables listing and inventory summary. We keep it manageable for a small finance team.
That is the goal for many borrowers. We structure the facility so the transition back to conventional financing is straightforward once the business has stabilized.
Have a transaction that needs certainty and speed? Talk to the Catalyst credit team about how we would structure it.
