Asset Based Lending
Asset-Based Lending (ABL) is offered by commercial banks around the world to manage risk and stimulate growth. ABL provides borrowers with the cash they need for working capital immediately, rather than having to wait for the full receivable conversion cycle. With its asset-based structure, ABL gives borrowers access to the most capital that their collateral will support. And any cash that isn’t needed by the business can be applied to the loan to manage interest expenses.
Asset-Based lending is ideal for:
• Fast-growing companies with sales that outpace their ability to raise money internally. An ABL allows them to finance day-to-day operations as they grow.
• Seasonal or cyclical businesses — like many of our agricultural clients — incur most of their sales at specific and identifiable times of the year, resulting in cash flow gaps that asset-based lines of credit can cover.
• Wholesalers, distributors, and manufacturers that experience fluctuations in cash flow cycles that make asset-based lending an effective option.
Find out if Asset Based Lending is right for your business. Call or Request a Consultation with your local Relationship Manager to learn more.