Asset-based credit structures for middle-market businesses.
Facilities are evaluated around collateral value, cash conversion cycles, useful asset life, and the business purpose behind the financing request.
Credit structures for asset-intensive businesses.
Facilities are built around eligible collateral, cash conversion cycles, useful asset life, and the business objective behind the financing request. Structures can include step and seasonal payment schedules, deferred payments, progress funding on equipment builds, and sale-leasebacks on owned assets.
- AR revolvers
- Inventory facilities
- Borrowing-base lines
- Equipment loans
- Capital leases
- Operating leases
- Owned equipment
- Machinery
- Fleet and rolling stock
- Acquisition bridges
- Refinancing
- Special situations
How each structure earns its keep.
Illustrative scenarios showing the mechanics — and what the CFO actually gains from each.
The seasonal build
A $40M wholesale distributor builds inventory from July through October ahead of its selling peak. The bank line is a fixed $3M, set against last year's average balance sheet — so at the exact moment receivables and inventory are highest, availability isn't. A revolver sized against eligible receivables and inventory recalculates as invoices and stock move: the line expands into the season and contracts after it.
What the CFO sees: peak-season capacity without a mid-year amendment, funding cost that tracks actual usage, and availability tied to assets instead of a trailing-twelve covenant the seasonal dip always threatens.
Capacity ahead of the contract
A precision machining company wins a multi-year program that requires two new CNC centers — $1.8M installed — months before the first shipment invoices. An equipment loan or lease matched to the useful life of the machines, with progress funding through delivery and a stepped schedule through commissioning, puts the capital in place ahead of the build.
What the CFO sees: capex kept off the revolver so working capital stays for working capital, payments aligned to the revenue the machines produce, and the commissioning gap financed rather than absorbed.
Equity sitting in the yard
A regional trucking company owns its tractor and trailer fleet outright — roughly $6M of appraised equipment value idle on the balance sheet — while an acquisition needs $3.5M at close. Selling the fleet to a financing source at an agreed value and leasing it back converts unencumbered iron into cash at closing, with operations untouched.
What the CFO sees: liquidity without new bank debt or equity dilution, proceeds timed to the transaction, and lease payments sized to a schedule the combined business supports.
The maturity that arrived early
A metals processor's credit facility matures in 90 days and the incumbent lender isn't renewing after two soft quarters — but the collateral is intact: quality receivables, salable inventory, owned machinery. A 12–24 month asset-secured bridge, sized to that collateral with a defined path back to conventional credit, turns a compressed refinance into an orderly one.
What the CFO sees: time — runway to let the P&L normalize, structure built around the turnaround plan, and a named exit instead of an open-ended workout.
Scenarios are illustrative composites intended to show how these structures typically work — not descriptions of completed transactions. Facility sizes, advance rates, and terms vary with underwriting, diligence, and final documentation.
Underwriting that starts with the collateral.
Traditional lenders often begin with a narrow credit box. Strattington Capital evaluates the assets, the cash conversion cycle, the business purpose, and the path to repayment — underwriting the complexity a conventional credit box screens out.
01 Asset-first discipline
Facilities are evaluated around the value, quality, liquidity, and trajectory of the collateral.
02 Direct access
Borrowers and advisors work directly with experienced decision-makers throughout the financing process.
03 Practical structures
Solutions can be designed for growth, refinancing, seasonality, transition, or other business-purpose needs.
04 Early fit assessment
A clear read on whether the request may fit, so time is focused on executable financing opportunities.
05 Collateral clarity
Borrowers understand what assets support availability, what diligence is needed, and what could affect final terms.
06 Advisor-friendly process
We work with owners, management teams, sponsors, brokers, CPAs, M&A advisors, and turnaround consultants.
Have a financing need to review?
Share the business, collateral, requested facility size, and timing. Strattington Capital will provide a clear read on potential fit.