An ABL lends against a borrowing base.
We fund the invoice itself.
Asset-based lines give you a revolving line sized to a borrowing base — a fraction of your eligible inventory and receivables, governed by advance rates and credit availability that tighten when your slow season hits. We fund 100% of the inventory invoice and you repay as a percentage of daily net sales — no borrowing base to police.
Apply for a facility
— THE PROBLEM WITH ABLs
An ABL lends against a borrowing base — not the invoice you need to pay.
Availability is tied to a borrowing base and credit limit, covenants pile up, and what you can draw shrinks exactly when your slow season hits.
Borrowing base
It lends against the asset base, not your invoice. An ABL sizes a revolving line to a percentage of your eligible inventory and receivables. There's no set portion of any given invoice it will fund — what you can draw rises and falls with your borrowing base and credit limit.
Covenants
Borrowing-base certs, field exams, audits. An ABL wraps you in reporting, eligibility tests, and periodic audits. The operational drag lands on a finance team you've probably not hired yet.
Availability shrinks
The line tightens when you need it most. When eligible inventory or receivables fall, your borrowing base and available credit decline with them — exactly in the slow stretch when working capital is tightest. The structure fights your cycle.
— HOW IT WORKS
Repayment that matches your inventory cycle — not a calendar.
We fund the full invoice on day zero. You don't pay anything until the product lands. From there, we take a small percentage of daily net sales until we're repaid. If sales come in slower than projected, the IRR comes out of our return, not yours.
— ABL vs. INVENTORY FINANCE
| — Compare | THEMAsset-Based Lending | ELEPHANT HERD CAPITALCycle-Matched Inventory Finance |
|---|---|---|
| How funding is sized | A revolving line tied to a borrowing base and credit limit | 100% of the inventory invoice |
| Repaid only as product actually sells | No | Yes |
| No borrowing base, covenants, or field audits | No | Yes |
| Holds through your slow season | No — availability declines as your borrowing base shrinks | Yes — repayment flexes down with sales |
| No personal guarantees required | No | Yes |
| Time to funded | Weeks of underwriting and field exams | Days, once the facility is in place |
| Forward funding you can plan around | Reset every borrowing-base cycle | 6-month commitments you can plan around |
| Best used for | Borrowers with limited growth needs and comfortable policing a borrowing base | Borrowers with high unmet demand and big growth prospects |
— GET STARTED
Let's see if our funding lines up with your inventory cycle
Send us your last 12 months of revenue, your buying plan, and a 3 statement model. We'll come back with a facility size and structure within a week.
Start a conversation
For Investors