Any asset-based lenders experienced with ABL + SBA for small machine shops?

searcher profile

July 03, 2024

by a searcher from University of Denver - Daniels College of Business in Denver, CO, USA

Hello all - I'm currently working a deal that is $2M asking, that has approx. $1.2M salvage value in machinery and equipment.

I know from other posts that SBA can be combined with asset-based lending, and I'd like to explore that route. However, I haven't found ABL lenders that will lend on less than $5M in assets.

Are there any lenders, or does anyone know of any lenders, that will help on a deal this size?

Thanks for the support!

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Hello Tony. We do both SBA lending and asset based lending. You can in some circumstances combine both on a deal. However, with only a $2 million asking price, why would you not do the whole deal via an SBA loan versus two loans? You will get better terms on the SBA financing. Most SBA lenders will require all business as collateral at closing. I would be happy to have a discussion to understand what your goal is and see if we can help. You can reach me here or directly at redacted Good luck finding the right solution.
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Reply by a professional
from University of Massachusetts Amherst in Boston, MA, USA
Hi Tony, we help ETA entrepreneurs secure funding for their searches. We can potentially help you out with funding. Could you fill up this form: https://form.jotform.com/ridethewave/funding-ally, and please text###-###-#### or email redacted and I can see if we can help you out.
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