Understanding the Tools in Our Capital Toolbox
Across North America, we regularly speak with commercial bankers, investment bankers, M&A lawyers, accountants, and specialty finance professionals who ask a similar question:
“Where exactly does Garrington fit?”
The answer is simple but nuanced.
Garrington Capital is built around a range of collateral-driven lending solutions designed to support businesses in moments where structure, flexibility, and experience matter most. Over time, we’ve developed multiple lending verticals that allow us to meet companies at different stages and in different situations.
Over the coming months, we’re launching a series that walks through each vertical in our toolbox, clearly and practically, with referral partners in mind.
Our goal is straightforward:
To help you quickly identify when a client situation aligns with one of our lending solutions.
We begin with one of the most foundational:
Asset-Based Lending Where It Fits and Why It Works.
Asset-Based Lending is one of the most adaptable forms of commercial finance when structured thoughtfully.
At its core, ABL is a facility built around the value and monitoring of a company’s assets, typically:
- Trade/Accounts receivable(AR)
- Inventory
- Machinery & equipment
- Select real estate or specialty collateral
Rather than relying solely on cash flow or covenant-heavy frameworks, ABL provides liquidity based on what a business owns and how those assets perform.
When introduced early and structured properly, it can stabilize transitions, unlock growth, and provide breathing room where traditional credit becomes restrictive.
When ABL Makes the Most Sense
A company lands new contracts or scales production. Sales are increasing, but so are receivables and inventory requirements. Liquidity tightens despite strong operations.
Covenant Pressure or Bank Transitions
A borrower may be performing operationally but no longer fits within a traditional banking framework. ABL can provide structure and stability during the transition.
Acquisitions, Recapitalizations, or Ownership Changes
Transactions often require incremental working capital that cash-flow lenders may not be able to accommodate. Collateral-based facilities frequently solve this gap. Leveraging the equipment in an acquisition can provide purchase-price capital that gets amortized over time.
Complex or Time-Sensitive Situations
Multi-Collateral type structures, seasonal swings, or specialized inventory can benefit from hands-on underwriting and tailored advance rates.
Where Garrington Capital Is Most Effective
With facilities typically ranging from $2 million to $30 million, Garrington is built for companies that require thoughtful structuring and direct access to decision-makers.
Referral partners often engage us when:
- Assets are strong, but liquidity is constrained
- A traditional lender is reducing exposure
- A business requires flexibility that standard frameworks cannot provide
- Speed and clarity are critical
- The situation involves multiple moving parts
We focus on disciplined collateral analysis, clear communication, and reliable execution. Our objective is not to replace existing relationships, but to support them, working alongside referral partners to create practical solutions for their clients.
Next Month:
We will be going deeper into ABL Structuring and sharing some recent funding examples
If you’re working with a company navigating growth, transition, or liquidity pressure, and strong collateral is available, we’re always open to an early conversation.