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Asset-Based Lending: A Commercial Banking Solution For Business Growth

By Liz Froment, Jun. 30, 2023
A row of ten green and white trucks parked outside of the Interstate Batteries warehouse

Eastern Bank's Commercial Lending Team helped Boston Battery double in size over the last year.

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Boston Battery is an independent, locally owned wholesale distributor of Interstate Batteries—North America's leading automotive battery brand for seventy years. When Daniel Schmitz, President of Boston Battery, wanted to expand the business into new territories, he explored financing options.

One stood out: Asset-Based Lending (ABL). With ABL, the loan is “asset-based” where a company uses its assets, such as accounts receivable, inventory, and property, plant and equipment (PP&E), as collateral for the loan. Working with Eastern Bank, Schmitz found the right combination of flexibility and terms that have enabled Boston Battery to achieve its growth objectives and reach customers in new metro areas.

Asset-Based Lending as the Natural Fit

Schmitz, shown below, has run Boston Battery for the last decade as a wholesale distributor and dealer of Interstate Batteries in the Greater Boston area.

Daniel Schmitz, the founder and president of Boston Battery, smiles for the camera wearing a navy blue polo shirt.

"We have grown the business dramatically over the last decade, organically and through smaller acquisitions. Historically, we were able to self-finance or use related party debt," says Schmitz. "But I wanted to put financing in place that would allow us to expand aggressively and pay back some related party debt."

After speaking with a debt advisory firm, Schmitz learned that ABL may be a fit for Boston Battery. "Our business has a lot of inventory, accounts receivable, and equipment. And the wholesale distribution automotive aftermarket is a very steady business." says Schmitz. "So, asset-based lending seemed like a sensible and cost-effective way to finance the business and help us continue to grow organically and through M&A."

Finding Flexibility With Eastern 

Once Schmitz decided that ABL was the best option for Boston Battery, he narrowed down potential lenders based on competitive financing terms. When his accountant recommended Eastern Bank, Schmitz liked what he saw during the vetting process.

A view of the side of a white and green Interstate Batteries van as it drives by

"Eastern seemed very interested in understanding our business," says Schmitz. "Plus, there was a level of flexibility from the ABL team that gave me the confidence that we could make this work over the long term as Boston Battery evolves."

One area Schmitz paid particular attention to during the lender vetting process was reporting.

"It was clear the team had experience with ABL deals," says Schmitz. "We report monthly. Eastern recognized the nuances of the business but did not require a burdensome weekly or daily reporting schedule.”

Interstate Batteries - Outrageously Dependable logo

Working Together

Working with Eastern Bank’s ABL team to secure financing has helped Boston Battery expand. "We put this facility in place in October 2021. By April of 2022, we were able to complete an acquisition that doubled the size of our business. We now have two, great new assets in New Jersey and Pennsylvania. It's very exciting."

Boston Battery continues to look forward with confidence to future business growth opportunities. With every additional need for an acquisition or merger, the process is streamlined because of the collaborative relationship with Eastern’s ABL team.


Eastern Bank's Commercial Lending Team helped Boston Battery double in size over the last year. If you're interested, learn more about asset-based lending.

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