How the Right ABL Partnership can Finance Growth and Support Dealmaking

In the world of commercial finance, non-bank tangible asset-based lending (ABL) plays a crucial role in supporting businesses that need flexible and fast funding solutions. Businesses seeking capital for growth initiatives, restructuring, equity buyout or M&A dealmaking sometimes are unaware of appealing non-bank options available to them. For bankers, accountants, and business consultants, having a reliable non-bank ABL partner can make all the difference in serving their clients effectively.

But what separates a great ABL partner from the rest? Here are six key attributes that define excellence that dealmaking partners—including bankers, accountants and business consultants—should prioritize when evaluating a new partner.

Businesses seeking capital for growth initiatives, restructuring, equity buyout or M&A dealmaking sometimes are unaware of appealing non-bank options available to them.

Find a Way to Say “Yes”

One of the biggest differentiators for an outstanding ABL partner is the ability to find a way to say “yes”—even when traditional lenders say “no.” Creative structuring, industry expertise and a deep understanding of collateral valuation enable great ABLs to craft solutions where traditional financing sources may be blocked by a borrower’s financial statement obstacles. A seasoned ABL partner will have decades of experience crafting creatively structured finance solutions using a diverse range of asset collateral, including heavy equipment, vehicles, aircraft and real estate. An experienced ABL partner will also have team members who are experts in complex structured finance solutions and how to apply leverage on and off the balance sheet and lend across state, provincial and federal borders. A proven problem-solving mindset and experience not only strengthens relationships with referral partners, but also helps more businesses access the capital they need.

Be Fast

Businesses that approach non-traditional or private lenders often require quick access to capital, whether for growth opportunities, managing cash flow, restructuring or overcoming financial hurdles. Because of the rigorous underwriting requirements imposed on banks and credit unions by federal regulators, the application process for traditional financing solutions can take months. The ABL partner must understand this urgency and prioritize speed in the underwriting, approval and funding processes. A great ABL partner can deliver a “red light/green light” assessment within one or two days, and can complete the application process and provide funding in as little as one week. Being able to provide fast decision making and fast access to capital gives bankers, accountants, and consultants a solution-oriented edge in meeting their or their client’s respective needs.

Use Data-Driven Decision-Making

ABL partners leverage data analytics to make informed lending decisions. This is where experience matters. A partner with decades of experience can outperform relative newcomers because they’ve accumulated more data and firsthand knowledge about industry trends and asset valuations, allowing them to offer better terms and with less risk. A data-driven approach also fosters consistency and fairness in lending decisions, increasing confidence among partners in recommending their services.

Use Straightforward Structures

One characteristic of tangible asset-based loans is that the approval and repayment structures are straightforward when compared to corporate lending or non-bank junior debt providers. Traditional bank loans include restrictive and intrusive covenants—the borrower is required to submit regular reporting to the bank during the term to ensure the business is maintaining thresholds for revenue, profit, leverage or other financial KPIs. Rarely do tangible asset-based loans require burdensome covenants, especially financial ones. Access to capital and loan approval amounts are comparatively simpler, more flexible and more straightforward. Complex and ambiguous underwriting methodologies or repayment agreements can be a major deterrent for borrowers. Tangible asset-based lenders that use clear, concise and fair terminology make the borrowing experience smoother and more transparent, building trust with both borrowers and referral partners.

Focus on Customer Satisfaction

An exceptional lender partner prioritizes customer satisfaction by delivering a positive and transparent experience throughout the financing process. This means setting expectations up-front, and being responsive, proactive and solution oriented. Open communication is a foundation of customer satisfaction. Non-bank ABL partners should communicate clear expectations regarding approval criteria, loan terms and funding timelines. The partner and the borrower should never be left wondering what the next step in the process is. This transparency ensures all parties can confidently proceed through next steps without the fear of hidden terms, last-minute changes or misleading commitments. Clear and frequent communication and a commitment to customer satisfaction strengthens relationships and enhances the reputation of both the lender and the referring partner.

Be a Team Player

A true partner is one who prioritizes the client’s best interests—even if that means referring them elsewhere. If a non-bank ABL determines that a borrower’s needs would be better served by a different financing solution, they should be upfront and guide them accordingly. This consultative approach reinforces trust and credibility, ensuring that referral sources view the asset-based lender as a reliable and ethical partner. Most businesses employ a variety of financing tactics to address their business challenges, and a good lender partner is not afraid to steer the borrower to a different method if it is a better solution for any given problem. Reciprocation within the referral ecosystem creates a symbiotic relationship where all parties grow together. Whether it’s directing clients to traditional lenders for refinancing options, or recommending other partners for financial and legal strategy, reciprocity strengthens long-term collaboration.

Conclusion

Being a great non-bank asset-based lending partner requires more than just providing capital. It demands transparency, speed, creativity, data-driven decision making and a commitment to mutual success. By embodying these qualities, ABLs can build lasting relationships with referral partners and clients alike, while simultaneously ensuring that more businesses get the financial support they need to thrive.

Warren Miller is a Chartered Financial Analyst (CFA) with nearly two decades of asset management and underwriting experience. He is vice president and managing partner for Travelers Capital Corp. and a member of ACG British Columbia.

Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.