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# Grow your business with an asset-based loan

Asset-based loans can help businesses grow, free up working capital, maximize borrowing capacity, and help operate more efficiently.

Transcript: Grow your business with an Asset-Based Loan

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WF | Commercial Banking logo

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Help to grow your business with an Asset-Based Loan

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In today’s dynamic business environment, choosing the right sources of capital can create a competitive advantage for your company.

If you’re ready to grow your business, free up more working capital, maximize your borrowing capacity, or simply operate more efficiently, an asset-based loan can be a smart alternative to consider.

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grow your business

free up working capital

maximize borrowing capacity

operate more efficiently

Asset-Based Loan (ABL)

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Asset-based loans let companies borrow against collateral, such as your existing accounts receivable, your inventory, company real estate, or specified fixed assets.

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Accounts receivable

Inventory

Real estate

Fixed assets

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A manufacturer, for example, faced with temporary supply chain disruptions, could use an asset-based loan to bridge their short-term need to finance their working capital.

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A manufacturer could potentially use an ABL to bridge their short-term need to finance their working capital.

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In this example, their accounts receivables, physical inventory and potentially even certain equipment could serve as collateral.

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Collateral

Accounts receivable

Physical inventory

Equipment

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An asset-based loan can be ideal for businesses with strong and diverse assets, at any stage in the company’s lifecycle.

Unlike other types of loans, your company’s credit rating and future cash flow are not primary determining factors.

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Cycle of: Early state > Growth > Expansion > Mature > Transition

Center of cycle: ABL // Strategic debt/equity // Capital expenditures // Acquisition MBO // Refinance/restructure // Turnaround, exit

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Credit rating & cash flow

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Many businesses use an asset-based loan to fund significant growth, expand operations, secure resources, or even acquire another business.

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Why use an Asset-Based Loan?

- Fund significant growth
- Expand operations
- Secure resources
- Acquire another business

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Others use an asset-based loan to supplement working capital during uneven cash flow cycles or seasonal shifts in business.

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Supplement working capital

Asset-Based Loan

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A typical asset-based loan is generally structured as a revolving line of credit and may also include an amortizing term loan. Your assets’ values determine the total amount you may borrow.

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ABL facilities have a borrowing base determined by the advance rate on each collateral type

Bar graph: $100M borrowing base; $85M loan; $15M available to borrow

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The benefits of asset-based loans are clear:

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ABL potential benefits

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they’re widely available, provide maximum liquidity and are open to a variety of business types. This means companies can address their liquidity needs quickly. Asset-based loans feature competitive pricing, tied to the strength of your assets. They often have fewer covenants compared to conventional cash flow loans, making them a smart and flexible alternative to consider.

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- Widely available
- Provide maximum liquidity
- Open to a variety of businesses
- Competitive pricing
- Fewer covenants
- Smart & flexible

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Are you ready for what’s next in your business?

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Are you ready?

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Ask our team of financial specialists whether an asset-based loan can help you meet your goals.

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Contact us today

WF

©2025 WF. Member FDIC.

Commercial Banking products and services are provided by WF Bank, N.A. and its subsidiaries and affiliates. WF Bank, N.A., a bank affiliate of WF & Company, is not liable or responsible for obligations of its affiliates. Deposits held in non-U.S. branches are not FDIC insured. Products and services require credit approval.

Products and services require credit approval. WF Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of WF & Company and its subsidiaries.

RO-4902020

LRC-1025

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