Asset-Based Line Of Credit
Kingsmen Capital provides flexible asset-based lending in Canada and asset-backed lending solutions, helping businesses unlock working capital using receivables, inventory, equipment, and other assets.
What is Asset-Based Lending?
Asset-based lending is a financing structure where businesses secure credit using assets such as accounts receivable, inventory, or equipment. Instead of relying primarily on credit scores, lenders evaluate the value of business assets to determine borrowing capacity.
In Canada, an asset-based line of credit allows companies to access revolving capital that grows with their assets’ value.
For businesses seeking greater access to working capital, Kingsmen Capital offers asset-backed financing and asset-based lending solutions in Canada. By leveraging the value of accounts receivable, inventory, equipment, or other eligible assets, businesses can access higher credit limits and flexible funding structures.
How Asset-Based Lending Works
Asset-based lending operates differently from traditional business loans. Instead of a fixed loan amount, businesses access a revolving credit facility based on the value of their assets.
Borrowing Base
The borrowing base is calculated using eligible business assets such as:
Revolving Credit Structure
Unlike traditional loans, an asset-based line of credit replenishes as receivables are collected or inventory is sold, giving businesses continuous access to capital. This structure often allows for interest-only payments, helping reduce overall debt servicing and improve cash flow management.
Flexible Funding
Because borrowing capacity is tied to asset value, asset-backed lending can grow as the business grows.
Asset-Based Lending vs Traditional Bank Credit
| Feature | Asset-Based Lending | Traditional Bank Loan |
|---|---|---|
| Approval criteria | Based on assets | Based on credit history |
| Credit limit | Grows with assets | Usually fixed |
| Collateral | Receivables, inventory, equipment | Often real estate |
| Funding speed | Faster approvals | Slower process |
| Flexibility | Revolving credit structure | Fixed repayment schedules |
While many businesses choose asset-based lending for flexible credit tied to receivables or inventory, others may benefit from structured financing such as term loans, which provide a fixed loan amount with predictable repayment terms.
Need flexible financing based on your business assets?
Kingsmen Capital provides scalable asset-backed financing solutions designed to grow with your business.
Here’s why our asset-based lending stands out:
Businesses across Canada use asset-backed financing because it provides scalable working capital while leveraging existing assets.
HIGHER CREDIT LIMITS FOR GROWTH
With access to credit from $50,000 to $10 million, you can secure the capital you need to scale, expand, and strengthen operations.
leverage business assets
We accept a wide range of assets including accounts receivable, inventory, equipment, and in some cases, real estate, turning your existing resources into working capital.
flexible debt solutions
Our ABL program can be structured to consolidate existing business debt, manage CRA arrears, or improve overall cash flow stability.
no minimum credit score required
Available to businesses with as little as 1 to 2 years in operation, our financing looks at the strength of your assets, not just your credit history.
government backed security
With government backed support, you can count on reliable, compliant financing that helps position your company for long term success.
What Assets Qualify for Asset-Based Lending?
Businesses can unlock working capital through an asset-backed loan using several types of assets.
Accounts Receivable
Outstanding invoices from reliable customers are one of the most common assets used in asset-based lending.
Inventory
Finished goods or raw materials may qualify depending on turnover and liquidity.
Equipment and Machinery
Manufacturing equipment, commercial vehicles, and specialized machinery can also support asset-backed financing.
Real Estate
In some cases, commercial real estate assets can be included as part of an asset-based lending loan, helping businesses access larger credit facilities.
Frequently Asked Questions About Asset-Based Lending
An asset-based loan allows businesses to borrow against assets such as receivables, inventory, or equipment.
Approval timelines vary, but many asset-backed financing facilities can be structured within a few weeks.
Funding typically ranges from $50,000 to $10 million, depending on asset value and business financials.
No. Many small and mid-sized companies use asset-based lending in Canada to support working capital needs.
Lenders usually advance a percentage of the eligible asset value depending on asset quality and liquidity.
An asset-based line of credit allows businesses to borrow against assets such as receivables or inventory and access revolving capital. In contrast, business term loans provide a fixed lump sum that is repaid over a predetermined period.
Apply for Asset-Based Lending in Canada
Apply today to access a revolving credit facility that grows with your business.