If your company is seeking financing solutions of $5 million or more, you can benefit from the flexibility and versatility of an asset-based structure. Whether you’re planning an acquisition, are in a turnaround situation, or need a larger or more flexible financing solution, Bank of America Business Capital meets the needs of businesses throughout the United States, Canada and Europe.
Asset-Based Lending
Bank of America Business Capital
1. How it works
Asset-based loans (ABLs) are revolving lines of credit or term loans that are secured by the borrower’s assets. How much credit a borrower can access is primarily determined by the quality and value of the collateral, which can range from accounts receivables and inventory to equipment and real estate.
2. When it’s used
Midsized and large companies of all types use ABL for a variety of purposes:
- Working capital
- Acquisition
- Turnaround financing
- Capital expenditures
- Debtor-in-possession (DIP) financing
- Growth Recapitalization
- Refinancing/restructuring
- Buyout
- Leveraged employee stock ownership plan (ESOP)
3. See the benefits
As a borrower, using ABL can provide a range of benefits.
- Increase your borrowing power, especially for companies with less predictable earnings and cash flow
- Enhance discipline and efficiency around accounts receivables and production for more borrowing capacity
- Reduce financial covenants, including restrictions around the level of debt to enterprise value or cash flow, and net worth-focused covenants
- Potentially gain more time to address financial difficulties due to built-in collateral protection
- Use CashPro® from BofA to efficiently manage all your banking activities
Seth Benefield, Head, Bank of America Business Capital
Adam Moss, National Marketing Manager, Bank of America Business Capital
