How to Spot a Strong ABL Transaction (and Why It Matters to Investors) “Since 1999, we’ve reviewed thousands of lending opportunities—and passed on many. The reason? Discipline.” Not all collateral is created equal in asset-based lending, especially revolving lines of credit. While prospects (and their advisors) are often eager to rush into term sheets, seasoned lenders know that what looks…
When Collateral Has Fine Print: What Contracts Really Tell Us “A contractual right to bill is not the same as a contractual obligation to pay.” – A great Greek credit philosopher (or perhaps just a seasoned lender we respect) In private credit, that quote captures a truth we’ve lived with since our earliest days in the industry. With roots going…
Plan for the Worst and Hope for the Best. When we underwrite loans, we are always thinking about the exit; how will we get our money back? Planning for a terminal event we obtain appraisals on collateral so that we understand the current value, investigating the market and our prospective client’s resiliency. Furthermore, we look at historical financial and collateral…
ABL Series, Blog 3: When the Stars Align (and When They Don’t) Not every deal is a slam dunk in private credit—and especially in asset-based lending. But every deal does tell a story. Some are thrillers, some are cautionary tales, and the best ones have a bit of both. Today, we’re taking you inside a recent US$7 million financing we…
ABL Series – Part Two: How We Do It Properly Last week, we unveiled Asset-Based Lending (ABL)—what it is and why it matters. This week, we’re going a step further, exploring how we do it and why thoughtful diligence and disciplined underwriting are the foundation of our approach. Because in ABL, details matter. And done right, ABL can be a…
We Can’t Wait to Explain Asset-Based Lending – Here’s Why Having delved into the intricacies of invoice factoring, we’re thrilled to move on to our next lending vertical, asset-based Lending (ABL). And yes, we get it: at first glance, terms like “liquidation values,” “advance rates,” or “inventory financing” might not exactly ignite everyone’s excitement. But honestly, we can’t help ourselves—we…
How Do We Factor Invoices? We’ve previously discussed the mechanics of invoice factoring, but what does this process look like in real-world practice? How do we ensure we’re mitigating risk while creating value and security for our investors? Factoring is much more than purchasing invoices—it’s about understanding businesses, securing collateral, and verifying every step to protect our capital. Every deal…
Unlocking Liquidity: An Introduction to Invoice Factoring In the world of private credit, capital is the engine that drives growth, yet many businesses find themselves stuck in neutral with cash flow tied up in unpaid invoices. Picture a manufacturer poised to fulfill its largest order or a staffing firm striving to meet payroll for its growing workforce—only to face delays…
