Bank line of credit
Banks underwrite your balance sheet — two to three years of profitable financials, personal guarantees, and covenants on debt service coverage. Great for stable companies with predictable EBITDA.
Asset-based lending
ABL ties borrowing capacity to eligible collateral — receivables, inventory, and sometimes equipment. Lines flex up as assets grow, which suits acquisitive or seasonal businesses banks may cap.
Invoice factoring
Factoring is the most liquid form of ABL: you sell receivables outright rather than borrowing against them. There's often no monthly principal payment — funding scales directly with sales to creditworthy customers.
When to choose what
Explore factoring services or speak with an advisor about a blended structure.
- Bank: Mature profitability, real estate or equipment collateral, no urgency.
- ABL: Larger revolver needs, inventory-heavy operations, complex borrowing base.
- Factoring: Fast setup, customer credit drives approval, minimal financial history required.