Asset-Based Finance

Regions Business Capital

Regions Business Capital delivers cost-effective financing and operating flexibility to companies of diverse credit profiles and life-cycle stages, including periods of stability, rapid growth and financial stress. Asset-based loan (ABL) structures, supported by margined advances against business assets such as accounts receivable and inventory, allow you to unlock the value of your company’s assets to maximize borrowing capacity, supporting growth and other corporate goals. 1 2

Some of the advantages of asset-based loans include:

  • Greater Flexibility
    Asset-based loans generally require fewer covenants since loans are tied to collateral value. This flexibility frees you to focus on executing your company’s operating plan rather than meeting financial covenants.
  • Patient Capital
    ABL borrowers generally benefit from more time and flexibility to work through a market fluctuation or turnaround in the event of financial difficulty because asset quality is the main driver of credit availability.
  • Enhanced Liquidity
    When you borrow against a multiple of EBITDA, borrowing capacity could diminish if earnings should decline. Borrowing against company assets often results in greater liquidity and more predictable credit availability for your business.

Contact Regions to talk to a Lending expert about asset-based loans.