Asset Based Lending for Canadian Businesses

Turn your assets into working capital. Whether you need cash for payroll, expansion, or debt consolidation, Mehmi Financial Group helps Canadian businesses access flexible asset-based lending (ABL) facilities designed for growth.

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What Is Asset Based Lending?

Asset-based lending (ABL) is a secured revolving credit facility backed by your company’s receivables, inventory, and equipment. It allows you to borrow against the value of tangible business assets — instead of relying solely on credit scores or financial statements.

When traditional banks tighten lending criteria, ABL gives you reliable access to working capital. It’s a proven funding structure used by thousands of mid-market and SME companies across Canada to finance growth, manage cash flow, or weather slow-paying customer cycles.

‍Industry Insight:
  • The Canadian ABL market grew by 9.4% year-over-year (2024), reaching nearly $6.7 billion in active facilities (Source: Equifax Commercial Lending Data).
  • Over 35% of Canadian manufacturers now use ABL as a primary financing tool.
  • ABL facilities average $250K–$5M, but micro-ABL programs (as low as $100K) are rapidly expanding through fintech lenders.

Asset Based Lending Benefits

1. Access More Capital
Traditional lenders cap loan size based on profitability or net income. ABL focuses on asset value — often providing 25–50% higher borrowing capacity than unsecured loans.

‍2. Keep Cash Flow Stable
Borrow against receivables, inventory, or owned equipment to cover payroll, raw materials, or supplier payments — all while keeping operations uninterrupted.

‍3. Grow Without Equity Dilution
Unlike investors or venture funding, ABL helps you scale using your own assets, letting you retain 100% ownership of your company.

‍4. Flexible Revolving Structure
Draw and repay as needed. As your receivables and inventory grow, your borrowing limit automatically expands.

‍5. Better Terms for Asset-Heavy Businesses
Construction, manufacturing, logistics, and distribution firms can secure lower rates by leveraging strong balance-sheet assets.

Why Choose Mehmi for Asset Based Lending?

At Mehmi Financial Group, we specialize in custom ABL structures that fit the realities of Canadian SMBs — fast, flexible, and lender-agnostic.
We work with 30+ specialized asset-based lenders across Canada, giving your business access to the same financing strategies large corporations use — scaled to your needs.

‍With Mehmi, You Get:
  • Credit lines up to $5,000,000
  • Support for startups and non-bankable businesses
  • Collateral options: receivables, equipment, or inventory
  • Combined ABL + Equipment Loan or Line of Credit options
At Mehmi Financial Group, we specialize in custom ABL structures that fit the realities of Canadian SMBs — fast, flexible, and lender-agnostic.
We work with 30+ specialized asset-based lenders across Canada, giving your business access to the same financing strategies large corporations use — scaled to your needs.

Who Uses ABL Most:
  • Trucking & logistics fleets managing slow customer payments
  • Manufacturers balancing seasonal production cycles
  • Distributors & wholesalers with heavy inventory
  • Construction contractors financing large receivable cycles
Finance Smarter — Asset Based Lending Made Easy

Turn your business assets into growth capital. Whether you’re managing receivables, inventory, or equipment, Mehmi Financial Group can help you secure up to $5 million in working capital — quickly and strategically.
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Borrow up to $5,000,000

Advance up to 90% on receivables

Flexible revolving terms

Funds within 48 hours
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Get StartedBrowse Equipment
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What You Can Finance with Asset Based Lending

We help unlock liquidity from virtually any commercial asset class:
  • Accounts Receivable (A/R): Advance up to 90% of eligible invoices.
  • Inventory: Borrow up to 90% of wholesale value.
  • Equipment: Heavy machinery, trucks, CNC, or medical gear.
  • Real-World Assets: Yard vehicles, warehouse systems, or resale-ready units.
Combine multiple asset types into one powerful facility — ideal for hybrid or seasonal cash-flow needs.
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Check Out Our Full List of Eligible Equipment

Who Qualifies for an Equipment Loan?

You’re likely a strong match if:

  • Your business has been operating for 6+ months
  • You generate $500K+ in annual revenue
  • You’re seeking $100K–$5M in revolving working capital

Even if you’ve been declined by traditional banks, our partner network includes private, fintech, and alternative ABL lenders who focus on asset strength — not past credit challenges.

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Documents Required

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Articles of Incorporation
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6 Months of Business Bank Statements
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Credit Application
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Equipment or Inventory Asset List

3 Steps. No Surprises.

The Mehmi Financial Group experience is simple, quick, and customized to your financial needs.
1

Find the Equipment you need

Whether it be an individual's private sale or equipment listed by a dealer, there are numerous options available.
Browse Used Equipment
2

Get In Touch

An all-in-one customer service platform that helps you balance everything your customers need to be happy.
3

Get Approved

Secure approval and funding in as little as 24–48 hours with flexible terms.

Equipment Loan vs Lease vs Line of Credit vs Asset-Based Lending: What’s Right for Your Business?

Feature Equipment Loan Equipment Lease Equipment Line of Credit Asset-Based Lending (ABL)
Ownership You own the asset from day one Lender owns the asset; option to buy at term end No ownership until funds are used to purchase Assets remain owned by your business but act as collateral for credit
Best For Businesses building equity in equipment Preserving cash and gaining tax flexibility Short-term needs, repairs, or seasonal working capital Unlocking liquidity from A/R, inventory, or equipment for ongoing operations and growth
Upfront Costs Low to moderate (may require down payment) First payment + basic lease fees None until you draw funds Typically none; facility based on verified asset value and receivables
Payment Structure Fixed monthly payments Fixed or variable lease payments Interest-only on drawn balance Revolving credit; advance rates based on collateral value (up to 90% of A/R)
End-of-Term Options You own the asset Renew, return, or buy out Facility revolves for future draws Facility renews annually; credit limit can increase as business grows
Credit Requirements Flexible — options available for challenged credit Often more lenient for startups or low-credit profiles Moderate — stronger credit or collateral preferred Focuses on asset strength over credit score — ideal for bank-declined or high-growth firms
Borrowing Capacity Up to equipment market value Value tied to lease contract Up to pre-approved revolving limit $100K – $5M depending on A/R, inventory, and equipment valuation
Tax Benefits Depreciation and interest deductible Lease payments may be fully deductible* Interest may be tax-deductible Interest expenses deductible; improves working-capital efficiency without selling assets

*Tax benefits depend on structure and jurisdiction. Always consult your accountant.

FAQ: Got Questions? We’re Straightforward.

What types of assets can I borrow against?

You can leverage accounts receivable, inventory, and equipment. Most ABL lenders allow mixed collateral for higher facility limits.

How is an ABL different from a term loan or line of credit?

A term loan has fixed payments; ABL is revolving. It grows with your assets, providing ongoing working capital instead of a one-time lump sum.

How much can I borrow through an asset-based loan?

Most Canadian SMEs qualify for $100K–$5M, depending on the liquidation value of their assets and customer payment history.

Is ABL only for large corporations?

Not anymore. With the rise of fintech and private lenders, small and mid-sized companies now dominate Canada’s ABL market — especially in transportation, construction, and wholesale trade.

Can I use ABL for refinancing or consolidation?

Yes. For qualified applicants, we structure deals with low or $0 down payments based on credit strength, asset type, and lender policies. This helps preserve working capital while accessing critical equipment.

What industries qualify for ABL in Canada?

Manufacturing, logistics, construction, agriculture, retail distribution, and even professional services can use asset-based lending if they maintain receivables or equipment assets.

How long does approval take?

Once documentation is submitted, approvals typically occur within 24–72 hours. For larger facilities, final underwriting may take up to one week.

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Across Canada

24–48 hr approval
All credit types welcome
Serving Canada nationwide

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