Seeking ABL Lender for $1-2M Line of Credit on a Growing Business

March 03, 2025

by an investor from Brigham Young University - Marriott School of Management in Florida, USA

We're working on an exciting acquisition opportunity that requires a $1-2M Line of Credit that will be junior to our SBA 7(a) term loan. We plan to separate the Accounts Receivable and Inventory from the collateral base of the SBA loan to use as collateral for LOC.

For background, the company has grown consistently over the past 5 years, has $1M - $2M of EBITDA, and ~$2M of combined A/R and Inventory.

Can anyone recommend an ABL lender who could be a good fit for this opportunity?

Reply by an intermediary
in New York, NY, USA

^redacted‌ appreciate the tag. Yuri, the interested lenders depend on what the business does and the nature of and mix between the AR and Inventory. We have 75+ ABL options on our CapFlow platform where some could be a fit based on those details. Feel free to ping me at redacted and we can set an intro call to discuss your options.

Reply by a lender
from Belmont Abbey College in Boca Raton, FL, USA

Hi Sven, yes that is in fact the case. You can carve out AR and inventory in many SBA transactions. Its just that many borrowers are not aware and the SBA lender does not advise them. Also, SBA is not a lender, they are simply the guarantor. It is the lenders prerogative which is why when structuring these types of transactions you must understand the capabilities of the SBA lender.

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