Asset-Based Lending from Clarify Capital

Asset-based lending allows a business to borrow against the value of what it owns rather than relying primarily on its credit profile. It is positioned for companies with cash tied up in outstanding invoices, warehouse inventory or idle equipment that face a short-term cash flow gap. Clarify Capital presents ABL as an alternative route to approval for seasonal businesses and owners with past credit trouble. Clarify Capital was co-founded in 2017.

• Secured business loan against company assets
• Asset value often weighed ahead of credit rating
• Aimed at small and midsize businesses
• Positioned as an alternative when banks decline

Lenders in Clarify Capital's network accept a range of business assets as collateral, each with its own typical advance rate. Receivables and inventory can also be combined into a blended borrowing base that sets the size of a revolving line, growing as those balances grow. Home equity may be used through a HELOC so that business assets stay unencumbered.

• Accounts receivable — up to 80% of the invoice amount
• Inventory — up to 65% of inventory value
• Equipment — often up to 100% of the equipment cost
• Commercial real estate — varies by lender
• Blended borrowing base of receivables and inventory
• Home equity via HELOC — up to $750,000
• Intellectual property

Borrowers can access up to $5 million against their assets, with APRs advertised from 5% for well-qualified borrowers. Funding arrives in one to 10 business days, and applications are placed with a network of more than 75 vetted lenders. Clarify Capital cites competitive bidding among lenders and little to no paperwork as benefits of the product.

• Borrow up to $5 million against assets
• APRs as low as 5% for well-qualified borrowers
• Funding in one to 10 business days
• 75+ vetted lenders in the network

Applicants must meet four minimum criteria covering revenue, credit, trading history and banking. Credit scores as low as 550 are accepted, reflecting the emphasis on collateral value. Clarify Capital offers a two-minute application that allows applicants to check their options without affecting their credit score.

• Over $10,000 per month in gross revenue
• Credit score of at least 550
• Minimum six months in business
• An active business bank account

Clarify Capital lists a range of sectors that use asset-based loans, typically those with significant receivables, inventory or physical equipment. Manufacturing is one such sector, where ABL is described as best suited to leveraging inventory or receivables. On the manufacturing side, asset-based lending requires physical assets as collateral, has flexible credit requirements and funds in one to three business days.

• Construction
• Trucking and logistics
• Medical and health
• Restaurants and bars
• Retail stores and e-commerce
• Manufacturing
• Automotive
• Professional services

The asset-based lending page sets ABL against unsecured loans across a set of characteristics, and lists the other products available through Clarify Capital. These alternatives cover both secured and unsecured structures and differ in speed, collateral needs and credit thresholds. Within the manufacturing loan range, options such as equipment financing, short-term loans and business lines of credit are offered without collateral, while SBA loans typically require it and take several weeks.

• Business term loan
• Business line of credit
• Working capital loan
• Equipment financing
• Invoice factoring
• Merchant cash advance
• SBA loan