The speed at which a business can access funds through asset-based lending (ABL) depends primarily on the type of collateral being used. While ABL is generally faster than traditional bank lines of credit—which typically take 4–8 weeks—the timeline for ABL is tied to the complexity of the asset valuation.
Typical funding timelines include:
- Accounts Receivable: This is the fastest asset class to fund. Once the initial field exam is complete and the borrowing base is established, funds can often be available within days of invoice submission.
- Inventory and Equipment: These assets typically require 2 to 4 weeks for funding, as they necessitate third-party appraisals to determine marketability and liquidation scenarios.
- Real Estate: This is the slowest category, generally requiring 4 to 8 weeks due to the need for professional appraisals, title searches, environmental reviews, and extensive legal documentation.
Overall, for revolving facilities and AR-heavy structures, businesses can expect a turnaround of 2 to 4 weeks for the initial setup, providing a significant speed advantage for companies needing responsive capital.
Related FAQs
-
How do I Conduct Buy-side Due Diligence?
Read More »: How do I Conduct Buy-side Due Diligence?Conducting buy-side due diligence involves a thorough validation process to uncover hidden risks and maximize acquisition value. According to Zaidwood Capital, the process is executed through several critical phases: Information Gathering and Analysis: The process begins with secure data room…
-
How is Private Equity Used as an Alternative Investment?
Read More »: How is Private Equity Used as an Alternative Investment?Private equity is considered a cornerstone of alternative investment portfolios, particularly as investors look toward 2026 to diversify away from traditional stocks and bonds. It involves acquiring equity stakes in non-public companies to foster growth, often through buy-side mandates where…
-
How do I Find Targets in Buy-side M&a?
Read More »: How do I Find Targets in Buy-side M&a?Finding targets in buy-side M&A involves a structured process of precise identification and scouting to ensure targets align with a specific acquisition strategy. According to Zaidwood Capital, the process is broken down into several key actions: Establishing Rigorous Criteria: Potential…
-
How do I Allocate to Alternative Investments?
Read More »: How do I Allocate to Alternative Investments?Allocating to alternative investments for 2026 involves a strategic transition from traditional assets into non-conventional classes like private equity, hedge funds, and private credit. Based on Zaidwood Capital’s framework, effective allocation should follow these practical steps: Define Allocation Targets: Determine…