Asset Based Lending

Because your company’s assets are used as collateral, Asset Based Lending can provide greater flexibility and freedom than a traditional term loan. Fewer covenants and customized loan terms allow companies to operate, grow and scale freely and efficiently. Collateral for Asset Based Lending can include assets ranging from accounts receivable and inventory to equipment and real estate.

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

Is Asset Based Lending right for your business?

Asset Based Lending is best suited for asset-rich companies with unpredictable cash flow which require capital to provide stability for continued operation and growth.

Companies that would most benefit from Asset Based Lending may include:

• Companies in the manufacturing, wholesale/distribution and specialty lender finance industries whose working capital borrowing needs are in excess of $5 million and who are mostly headquartered in the southern regions of the U.S.

• Companies with high working capital requirements due to seasonality

• Companies with high growth (either organic or via acquisition)

• Privately owned, sponsor owned or publicly listed companies

• Companies in more cyclical, lower margin or asset rich sectors, with focus on collateral and underlying liquidity

• Companies undertaking a turnaround or require restructuring of existing funding arrangements

• Companies with a requirement for revolving credit to work alongside other debt structures