Asset Based Lending
Asset Based Lending (ABL) works with privately held, private equity and venture backed mid-market companies to finance working capital, acquisitions/mergers, turnarounds or restructurings, growth financing, debtor-in-possession financing and inconsistent earnings histories.
- Typical loan commitments include asset-based lines, recurring revenue lines and non-formula lines of credit. These can be combined with cash flow term loans or can be independent
- Structures may include stand alone or first-out revolvers, split-lien asset-based revolvers, unitranche structures, or covenant-lite structures. Revolvers may also be accompanied by mezzanine and second lien term loans through non-bank third-party sources
- We offer a full suite of treasury management services with a robust online platform for cash management needs
- Our geographic focus is national, and we work with businesses in a wide variety of industries
We have a broad ABL offering, divided into two groups. Here’s the difference:
ASSET BASED LENDING
Reporting
- Borrower’s management team is a critical factor in ABL. Focus will be placed on the company’s history and management’s experience and management style
- Private equity firms (funded and fund less), parent holding companies, and individuals invest in companies that are involved in ABL transactions, acting as the companies’ financial sponsors
- CPA prepared Reviewed Statements will generally be required for loan commitments above $5MM
- Well defined projections
Monitoring
- Monthly BBC and monthly financial statement reporting
- Monthly or quarterly covenant testing
Documentation
- Outside counsel with significant legal customization
- Maturity is generally 1-3 years
BUSINESS CREDIT
Reporting
- Collateral value is emphasized
- Privately owned or smaller number of shareholders
- CPA statements not required
- Projections generally not required
Monitoring
- Monthly, weekly or Daily BBC
- Streamlined or Detail AR collateral Tracking
- May include BCD direct cash application
Documentation
- Standard Business Credit Loan Document with little negotiation
- Demand notes, generally set to one year contract
- May include early termination fees, minimum usage fees, over advance and over line charges, and other transactional fees
Note: All loans/lines of credit are subject to credit approval. Terms and conditions apply.