Why Choose Asset-Based Lending?1
Asset-based loans are a great alternative for companies in a variety of situations including a period of rapid growth, experiencing seasonality, in turnaround or recovery mode, or when highly leveraged or undercapitalized. Our asset-based loan (ABL) solutions provide access to additional capital for growth, payroll and other operating expenses, secured by your accounts receivable and inventory.
- Competitive advance rates when matched with highly liquid assets
- Covenant flexibility to meet your funding needs
- Streamlined underwriting and approval provides working capital quickly
- Expertise in many industries including wholesale and distribution, software, technology, hardware, manufacturing and more
- Banking for all stages of growth and dedicated bankers providing personal attention from early stage to services tailored for larger organizations and public companies
Asset-Based Lending Solutions1
Your banker will create an asset-based financing solution tailored to your specific needs. Because an ABL uses your balance sheet assets as collateral, it can be a sensible choice to maximize your borrowing capacity and deliver needed liquidity for:
- Accounts receivable (A/R) financing
- Acquisition financing
- Working capital financing
- Invoice financing, inventory financing and purchase order (PO) financing
- Supply chain management
- Equipment financing
Our Asset-Based Lending Parameters
We customize your asset-based loan to your company’s goals, within specific lending guidelines. We typically base financial covenants upon net availability, balance sheet liquidity and/or cash flow.
- Facility size: $2 million to $50 million
- Pricing: Prime- or Ameribor-based options
- Typical advance rates: 80% to 85% of eligible A/R and up to 50% to 60% of eligible inventory
- Fees: origination and nominal collateral monitoring charges
- Financing for companies with negative cash flow may be possible with adequate liquidity
1. All offers of credit are subject to credit approval, satisfactory legal documentation, and regulatory compliance. Borrowers are responsible for any appraisal and environmental fees plus customary closing costs, including title, escrow, documentation fees and may be responsible for any bank fees including bridge loan, construction loan, and packaging fees.