Asset-Based Lending

We deliver 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]

Advantages of asset-based loans

  • 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 (Earnings Before Interest, Taxes, Depreciation, and Amortization), 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.

We offer a range of asset-based-lending solutions

We provide a range of asset-based lending solutions including revolving credit facilities, equipment and owner-occupied real estate term loans, and ABL-Stretch and FILO term loans.

Our relationship-oriented asset-based-lending teams work with asset-intensive businesses, seasonal and cyclical businesses, distributors, manufacturers, retailers, equipment-rental and business-services companies. We also provide financing, on a selective basis, for healthcare providers of goods and services. 

With facilities starting at $10 million, we can provide tailored financing options for:

  • Working capital needs
  • Acquisitions and capital expenditures
  • Stock repurchases and recapitalizations
  • Turnarounds or restructurings
  • Refinancing existing cash-flow or ABL facilities

Specialty asset-based lending teams

Our relationship-oriented specialty lending teams work to deliver alternative working capital solutions as well as custom structures for select industries.

Contact Regions to talk to a Regions Business Capital originator about structuring an asset-based loan solution for your company.