Asset-Based Lending
Asset-based loan facilities can provide you with needed liquidity for operations and growth. Our Asset-Based Lending Group offers asset-backed loans in addition to traditional corporate banking solutions. Get flexible financing backed by your inventory, receivables or other balance sheet assets.
Why Choose Asset-Based Lending?1
Asset-based lending (ABL) is a flexible and strategic financing option for companies navigating various business cycles—whether experiencing rapid growth, seasonal fluctuations, a turnaround or operating with high leverage or limited capitalization.
Our asset-based lending solutions offer formula-based revolving lines of credit that unlock working capital by leveraging your accounts receivable and inventory. These funds can support growth initiatives, payroll and other operational expenses.
Key Benefits
- Attractive Advance Rates: Competitive terms when backed by highly liquid assets.
- Flexible Repayment: Interest-only payments with principal due at maturity.
- Industry Expertise: Deep experience across sectors including wholesale, distribution, software, technology, hardware and manufacturing.
- Scalable Banking Solutions: Personalized support from early-stage growth to large enterprises and public companies.
Tailored Asset-Based Lending Solutions
Your dedicated banker will design an ABL structure aligned with your business goals. By using your balance sheet assets as collateral, asset-based lending can help maximize your borrowing capacity and provide essential liquidity for:
- Accounts receivable (A/R) financing
- Inventory financing
- Acquisition financing
- Working capital financing
- Supply chain management
Our Asset-Based Lending Parameters
We customize each asset-based loan to each company’s unique needs, within defined lending guidelines.
- Facility size: $5 million and up with an ability to syndicate commitments over $100 million.
- Pricing: Variable rates based on Prime or SOFR.
- Typical advance rates: Up to 80% to 85% on eligible accounts receivable and up to 50% to 60% of eligible inventory.
- Financial covenant(s): Based on liquidity and/or cash flow metrics.
- Financing for growth companies with negative cash flow may be possible if liquidity levels are acceptable to the Bank.
Asset-Based Lending Group
You can benefit from the flexibility of asset-based financing to provide working capital when you need it. Whatever your requirements, you'll receive personalized attention and service designed to meet your needs and timeline.
1. All offers of credit are subject to credit approval, satisfactory legal documentation, and regulatory compliance. Borrowers are responsible for customary fees associated with asset-based lines of credits which may include but are not limited to facility fees, field audit fees, appraisal fees, and legal expenses.