Same idea as a home equity loan, with one difference. A business needed $150K in working capital. They owned a 50-foot Hustler powerboat outright. ABL released the equity from the boat, funded the deal, and held the asset for the loan term. The security was the boat, not the family home.
The situation
Working capital. A short-term gap, the kind that needs covering for a few months, not refinancing for years.
The business owned a 50-foot Hustler powerboat outright. Equity sitting in it. That’s what unlocked the cash.
This is what asset-based lending looks like at its simplest. A business owns an asset with equity in it. They need short-term cash. ABL releases the equity for the loan term, and the asset comes home on repayment. Same shape as a home equity loan, just with a different asset class.
The asset
A 50-foot Hustler powerboat. Owned outright by the client, no other loans against it. The equity ABL could release was sitting right there.
For an asset-based lender, that’s enough to underwrite. The boat is the security, the business is the borrower, the deal doesn’t need a P&L to make sense.
The need
$150K in working capital, sized to bridge a short-term gap and unwind on repayment. Not a new long-term loan against a new set of credit hurdles. Cash against equity that already existed.
The structure
The deal went through as a Park It facility. $150K disbursed. Total loan amount was $163,960, including a $10K risk fee. Boat lodged with Lloyds for the loan term.
ABL took its own view of the asset, sized the deal against the equity sitting in it, and got comfortable with the margin. Settlement went through.
- Product: Park It
- Asset: 50-foot Hustler powerboat, owned outright
- Disbursement: $150K
- Loan amount: $163,960 (includes $10K risk fee)
- Use of funds: Working capital
- Security: Boat lodged with Lloyds for the loan term
The outcome
Funds in the client’s account, boat parked with Lloyds, loan running. The business gets on with what it does, and the asset comes home when the loan is repaid.
Plenty of businesses just need a few months. We can give them a few months against something they already own. That’s the whole deal.
Why this deal worked
Three things had to be true for the deal to work. They’re the same three things every Park It deal needs:
- An asset with real equity, owned outright. The boat wasn’t financed. Lloyds could hold it cleanly for the loan term.
- A short-term need with a clear way to repay. Working capital for a viable business, sized to the gap, not a long-term hole being patched.
- A fast yes, without new exposure on top. The deal moved faster than the alternatives the business was weighing up, and was a clear yes from the first conversation. No new long-term loans, no fresh exposure stacked on the books. The equity already in the asset did the work.
If your client owns an asset outright and needs cash for a defined short-term purpose, that’s an ABL conversation. The deal looks at what they own, not at their credit file or P&L. Same shape as recommending a home equity loan, except the security is a business asset, not the family home.
Got a client with an asset and a short-term gap?
If your client owns an asset outright and needs cash for a few months, not a few years, there may be a deal in it. Same shape as a home equity loan, different security. Indicative terms within 2 hours. Same-day settlement when the asset is secured.