For companies operating in distribution, wholesale, retail, manufacturing, and transport, substantial enterprise value is locked inside working capital. Traditional cash-flow loans often fail to capture this collateral value, leading to restricted borrowing limits during peak seasonal surges. Pinnacle Private Credit's Asset-Based Lending (ABL) and Private Debt facilities liberate this liquidity.
By establishing a dynamic borrowing base tied directly to verified accounts receivable, raw materials, finished inventory, and equipment appraisals, our private debt solutions expand automatically as your sales orders multiply.
How Our Asset-Based Facilities Operate
| Collateral Category | Standard Advance Rate | Underwriting Diligence Requirements |
|---|---|---|
| Eligible Accounts Receivable | 80% – 85% | Commercial receivables under 90 days; diversified creditworthy debtor base |
| Finished Goods Inventory | 50% – 65% (of NOLV) | Net Orderly Liquidation Value (NOLV) appraisal; fast turnover velocity |
| Raw Materials & Components | 40% – 55% | Standard commodity grade; non-perishable; unencumbered title |
| Machinery & Rolling Stock | 60% – 75% (of FLV) | Forced Liquidation Value (FLV) appraisal; verified maintenance records |
Springing Covenants: Freedom to Operate
Traditional bank loans impose strict, quarterly financial covenants (such as total leverage ratios) that can trigger technical defaults even when a company is operationally healthy. In contrast, Pinnacle structures ABL facilities with springing covenants:
As long as the borrower maintains excess availability under their borrowing base (typically 12.5% to 15.0% of the total facility line), no financial maintenance covenants are tested. This provides management with total operating freedom during expansion cycles or supply chain realignments.
Request an ABL Borrowing Base Analysis → Compare ABL vs. Cash Flow Loans →