Asset-Based Lending for Michigan Businesses
There is a version of your business that your bank has never seen. Not because the numbers are hidden. Because the numbers a bank looks at first, revenue, profitability, debt service coverage, tell only part of the story of what you have built.
The receivables on your balance sheet represent contracts fulfilled and invoices earned. Capital that exists and simply has not arrived yet. The equipment your operation runs on carries collateral value that a conventional working capital line will not touch. The building you own has equity that has been sitting idle since the day you acquired it. Together these assets represent the actual financial strength of the business. A strength that conventional cash-flow underwriting was never designed to fully recognize.
Asset-based lending is how Michigan manufacturers close that gap.
The Balance Sheet Is the Story
Asset-based lending is not a fallback for businesses that cannot qualify conventionally. It is the right structure for manufacturers and established operators whose assets tell a stronger story than their most recent tax return. The company growing fast enough that receivables are outpacing cash collections. The manufacturer whose equipment base and real estate represent capital that a standard credit line ignores. The operator carrying multiple obligations at rates that are quietly consuming the cash flow the business needs to scale.
LVRG structures asset-based financing around the full picture of what the business has built. Not a formula. Not a product pulled off a shelf. A capital structure built around the specific assets, the specific cash flow cycle, and the specific growth objectives of the business in front of us.
The Assets That Drive the Structure
Accounts Receivable
Work delivered. Invoice issued. Payment pending. For Michigan manufacturers managing 30, 60, and 90-day collection cycles, receivables represent earned revenue that has not yet converted to cash. A revolving facility structured against receivables converts that timing gap into working capital available now, expanding as the business grows and contracting as it collects.
Machinery and Equipment
The equipment base of a Michigan manufacturer represents years of capital investment and significant collateral value. CNC machines. Stamping presses. Fabrication equipment. Specialty tooling. Assets that a conventional working capital line treats as invisible. LVRG structures against them.
Owner-Occupied Commercial Real Estate
This is where LVRG goes beyond what most asset-based lenders offer. Where a typical ABL facility stops at receivables and equipment, LVRG also lends against the equity in an owner-occupied building. For a manufacturer who owns their facility, that equity is often the largest untapped asset on the balance sheet. LVRG structures financing against it, allowing the owner to pull cash out, pay down high-interest debt, and put idle equity to work, all with minimal impact on monthly cash flow. The building stops being a static entry on the balance sheet and starts functioning as the capital resource it has always been.
This owner-occupied real estate program can stand on its own or be structured alongside a receivables facility, so a business can clean up its balance sheet and fund its growth in one coordinated move. It is detailed in full on our Commercial Real Estate Financing page.
One facility against a single asset. Multiple facilities coordinated across the balance sheet. The structure follows what the business actually needs. Nothing about it is standard.
Every Michigan Manufacturer Is Different. Every Capital Structure Should Be Too.
A fabricator managing 60-day receivables against 30-day payables has a fundamentally different capital requirement than a manufacturer sitting on $8 million in equipment equity with a facility owned free and clear. A business in a high-growth phase where receivables are climbing faster than collections has different needs than an operator carrying high-interest legacy debt that is suppressing the cash flow available for expansion.
LVRG does not apply a template. The business is analyzed completely. The asset base, the cash flow cycle, the existing obligations, the growth plan. The right structure emerges from that analysis. One facility if that is what the business needs. Two facilities closed together if the capital stack requires it. Something more complex if the situation demands it.
This is the difference between a lender that offers a product and a firm that builds a structure.
From the Closing Table
An Auburn Hills manufacturer had spent years building an operation worth financing. Substantial receivables. A significant equipment base. A building with real equity. Revenue that reflected a business performing at a serious level. But the balance sheet also carried multiple bank loans and high-interest obligations consuming cash flow the business needed for the growth sitting directly in front of it.
No single bank saw the full picture. Each institution saw its own piece of the balance sheet and structured around it. LVRG looked at everything.
LVRG structured a $2,500,000 commercial real estate term loan on a 25-year amortization that retired multiple bank obligations and eliminated the high-interest debt load in a single closing. Alongside it, a $1,000,000 revolving working capital facility structured against accounts receivable. One transaction. A restructured balance sheet. Debt service reduced. Cash flow freed. Working capital deployed from day one.
The business did not get a loan. It got a capital structure that reflected what it had actually built.
Ready to Put Your Balance Sheet to Work. Make the Call.
Michigan manufacturers who have built substantial assets deserve a capital structure that reflects them. That conversation starts here.
Call LVRG directly:(855) 998-5874
Frequently Asked Questions
What is asset-based lending and how does it differ from a conventional business loan?
A conventional business loan evaluates the income statement first. Cash flow, profitability, debt service coverage. Asset-based lending evaluates the balance sheet first. Receivables, equipment, and owner-occupied real estate are assessed as the primary collateral driving the credit facility. For Michigan manufacturers who have built substantial assets and whose financial profile does not conform to conventional cash-flow underwriting, asset-based lending recognizes the full strength of what the business has built rather than applying a formula designed for a different type of borrower.
What assets does LVRG lend against in Michigan?
LVRG structures asset-based facilities against accounts receivable, machinery and equipment, and owner-occupied commercial real estate. The owner-occupied real estate program is a point of difference from most asset-based lenders, who stop at receivables and equipment. Facilities can be structured against a single asset or across multiple assets at once, depending on what the business's capital requirements demand.
Can a Michigan manufacturer use their building to free up capital?
Yes, and this is one of the things that sets LVRG apart from a typical asset-based lender. LVRG lends against the equity in an owner-occupied commercial building, allowing the owner to pull cash out, pay down high-interest debt, and put idle equity to work with minimal impact on cash flow. It can be structured on its own or alongside a receivables facility for working capital. The full program is detailed on our Commercial Real Estate Financing page.
Who is asset-based lending right for in Michigan?
Michigan manufacturers and established commercial operators who have built substantial receivables, equipment, or real estate equity and whose capital requirements are not fully addressed by conventional financing. Businesses growing fast enough that receivables are outpacing cash collections. Manufacturers carrying significant equipment or real estate equity that conventional lines of credit do not touch. Operators with multiple high-interest obligations consuming cash flow that belongs in the business. If the balance sheet is strong and the conventional market is not fully recognizing it, asset-based lending structured by LVRG is the conversation to have.
How does LVRG determine the right asset-based lending structure for a Michigan business?
LVRG analyzes the specific business, the specific asset base, the cash flow cycle, the existing debt obligations, and the growth objectives before any structure is proposed. Every Michigan manufacturer operates differently and every capital structure should reflect that. One facility, two facilities, or a coordinated combination of real estate and working capital financing. The structure follows what the business actually needs, not what a product template dictates.
What industries does LVRG serve with asset-based lending in Michigan?
Michigan manufacturing is the primary concentration: automotive supply chain, metal fabrication, CNC machining, precision stamping, tool and die, plastics, and contract assembly. LVRG also structures asset-based facilities for established commercial contractors, distributors, and industrial operators with substantial asset bases across Metro Detroit, Oakland and Macomb counties, and throughout Michigan.
The Assets You Have Built Deserve a Capital Structure That Reflects Them.
Most Michigan manufacturers are operating against financing that was sized for an earlier version of the business. The balance sheet has grown. The assets have grown. The financing has not kept pace. LVRG structures the facility that closes that gap and puts the full strength of the balance sheet to work for the growth ahead.
Call LVRG:(855) 998-5874