Asset-Based Lending

Unlock capital with
asset-based lending

A smarter way to access working capital—secured by the assets your business already owns.

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Asset-based lending with Hancock Whitney

Hancock Whitney provides asset-based lending facilities for businesses with eligible collateral valued at $10 million or more. Accepted collateral includes accounts receivable, inventory, machinery, equipment, real estate, and intellectual property.

Flexible Credit Facilities

Our asset-based lending facilities start at $10 million, giving middle-market and growth-stage businesses access to meaningful capital structured around the value of their assets.

Depending on the term of your loan, these facilities are designed to support both near-term needs and longer-term growth strategies.

Revolving Lines of Credit

Access liquidity when you need it with a revolving line of credit secured by your working capital assets.

Advances are formula-driven based on the value of your receivables and inventory, so your borrowing capacity grows alongside your business.

3- to 5-Year Term Loans

For businesses investing in long-term assets, Hancock Whitney offers term loans secured by machinery and equipment — often structured in conjunction with a revolving line of credit.

Real estate may also be considered as additional collateral, giving you more options to unlock the capital your business needs.

What is asset-based lending?

Asset-based lending (ABL) provides revolving business lines of credit secured by your company's assets, with the amount of credit determined by the quality and value of your collateral. Because your company's assets serve as collateral, asset-based lending offers greater flexibility than a traditional term loan, with fewer covenants and more customized terms that allow your company to operate, grow, and scale efficiently. Eligible collateral can include accounts receivable, inventory, equipment, and real estate.

Borrowing Base

The borrowing base represents the maximum amount a lender will fund, based on the liquidation value of your collateral. Lenders calculate this figure by applying specific advance rates against a company's "eligible" assets, those that are typically liquid, tangible, and easy to value. Assets that don't meet eligibility criteria are excluded from the calculation.

Examinations and Appraisals

Field examinations and appraisals are third-party reviews used to independently verify the quality, value, and existence of the collateral securing an asset-based loan. These reviews ensure that collateral values are accurate and give lenders the information needed to set appropriate advance rates and provide borrowers with an objective assessment of their assets.

Dominion of Cash

Dominion of cash refers to the way proceeds from a company's customer collections are applied to the outstanding loan balance, typically on a daily basis. As payments are swept and the balance is paid down, borrowing capacity is restored, allowing companies to draw only what is needed to cover day-to-day funding requirements.

Benefits of asset-based lending

Increased Borrowing Capacity

Asset-based lending allows you to leverage the full value of your collateral, giving your business access to more capital than traditional cash-flow lending may provide.

Improved Efficiency

By unlocking capital tied up in accounts receivable and production assets, asset-based lending helps streamline your cash flow and keep operations running without interruption.

Custom Lending Solutions

Our asset-based lending facilities are structured around your business, with customized terms and flexible credit arrangements designed to meet your specific financing needs.

Freedom to Grow and Scale

With fewer debt covenants than conventional loans, asset-based lending gives your business the operational freedom to pursue growth opportunities and scale on your own terms.

When businesses use asset-based lending

Midsized and large companies of all types use asset-based lending for a variety of purposes:

Working capital financing
Business mergers or acquisitions
Dividend recapitalization
Capital expenditures
Business renewals
Refinancing
Financial restructuring

Businessmen discussing asset-based lending solutions

When to choose ABL over cash-flow lending

Companies with strong assets experiencing rapid growth or that have a lot of seasonality associated with their business, manufacturing companies, distributors, wholesalers or businesses in transition/turnaround all make good candidates for an asset-based lending facility.

Businesswoman receiving an ABL proposal from her commercial banker

Is asset-based lending right for your business?

Asset-based lending is best suited for asset-rich companies with unpredictable or uneven cash flow that need reliable capital to support continued operation and growth.

Your business may be a strong candidate for an asset-based lending facility with Hancock Whitney if you fall into one or more of the following categories:

Industry fit: Your company operates in manufacturing, wholesale distribution, or specialty finance, has working capital borrowing needs in excess of $5 million, and is headquartered primarily in the southern United States.
Seasonal capital needs: Your business carries high working capital requirements due to seasonal fluctuations in revenue or inventory.
High-growth companies: Your company is expanding rapidly (whether through organic growth or acquisition) and needs a financing structure that can keep pace.
Varied ownership structures: Your business is privately owned, sponsor-backed, or publicly listed.
Cyclical or asset-intensive sectors: Your company operates in a cyclical, lower-margin, or asset-rich industry where collateral strength and underlying liquidity are central to your financing strategy.
Transition or restructuring: Your business is navigating a turnaround or needs to restructure existing funding arrangements to better align with current operational realities.
Complex debt structures: Your company requires a revolving line of credit that works in conjunction with other existing debt obligations.

Have questions about asset-based lending?

Our asset-based lending team has the expertise to understand your company’s unique needs and customize an asset-based lending credit facility for you. Contact us today.

Unlock capital with
asset-based lending