Asset-Based Lending (ABL) is a loan secured by accounts receivables, inventory, machinery & equipment and potentially real estate assets as collateral.
Asset Based Loans
Asset Based Loans are provided across the bank and non-bank community, where Republic’s Asset Based Lending will often provide:
Higher collateral advance rates
More flexible structure (AR to Inventory ratio for example)
Increased financial covenants customization (if any such as FCCR or TNW)
Overall, businesses that partner with Republic Business Credit will achieve greater possibilities by accelerating their cashflow to support their growth.
Important Factors to Note:
ABL facilities typically require more additional due diligence, pre-funding field exams, and potentially third-party collateral appraisals where those aren’t typically required with factoring.
Asset-Based facilities are designed for an established businesses with annual revenues in excess of $10,000,000.
Company ownership can include founders, entrepreneurs, family, private equity and everything in between.
Business
Century old family owned Southern rice milling operation.
Situation
Company needed to refinance incumbent bank due to losses in 2023 from a tough growing season.
Specialized Financial Agreement
Advances on Accounts Receivables and Inventory along with waiving their an AR to Inv ratio during their three month seasonal inventory build.
Results
RBC refinanced their incumbent bank along with more than $5,000,000 in increased availability allowing the company to increase profitability in 2024!
Temporary Staffing Agency
Facility Size
$6,750,000
Business
Tennessee-based Temporary Staffing Company
Situation
Their incumbent bank opted not to increase its current line of credit without a personal guarantee.
Specialized Financial Agreement
Republic provided 90% advance on accounts receivables along with extended eligibility on a few 120 day payment customers.
Results
Republic increased availability by more then $1,000,000 at the initial funding, along with the ability to continue growing together.
Don’t Just Take Our Word For It
"We have grown into a $10,000,000 credit facility with Republic over the past decade, from day one, they always gave us the boost that we needed to be successful.”
Suzan S.,
CEO, Apparel Manufacturer
"From application to funding to ongoing support, Republic’s efficiency and streamlined processes have made our switching from a bank easier than we thought. Our company is up over 30% of projected sales for next year already."
LaToya M.,
Accessory Company
"Republic has been a truly collaborative partner. They push the idea of being your “growth partner” and their actions follow through with it. Their approach to problem-solving is exceptional and they work alongside us.”
