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Empower your business and achieve your financial goals by harnessing the potential of your balance sheet. If you want to expand your borrowing capacity, you should consider opening an asset-based line of credit with TAB Bank. You can take your financing relationship to a new level by allowing us to underwrite asset loans based on the specialized monitoring of your business collateral and credit. With asset lending from TAB Bank, you can seriously pursue your business goals with this added flexibility and credit availability.

Main Features of Asset-Based Lending from TAB Bank:

  • Flexible financing that scales with you
  • Minimal financial covenants
  • More liquidity than a traditional line of credit
  • The experience and care of TAB Bank relationship managers
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Asset-Based Lending

1-888-440-4541

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What is Asset-Based Lending?

Banks that offer asset-based lending services, such as TAB Bank, service businesses – not consumers. Because the business is putting down collateral, asset-based loans rates are lower than the interest rates on unsecured loans because the lender will be able to recoup some or even all their losses in case the borrower defaults on the loan. Other terms used interchangeably to describe asset-based lending include commercial finance and asset-based financing.

How Does Asset-Based Lending Work?

In order to meet the routine cash-flow demands of a business, many need to obtain lines of credit or take out loans. For example, if there is a brief delay in payments it expects to receive, a business still needs available cash to cover payroll expenses during the slow times.

If a company does not have enough cash assets or cash flow to cover a loan, asset-lending banks can approve business loans by using the physical assets of the company as collateral. A perfect example of this would be a brand-new restaurant that opened could use the equipment inside as collateral in order to access a line of credit in order to pay employees and fund business operations during the startup period.

TAB Bank provides commercial finance plans to businesses across a variety of industries, including:

  • Distribution
  • Manufacturing
  • Service
  • Wholesale
  • Retail

Asset-based lending banks loan money in an agreement that is secured by collateral. An asset-based line of credit or loan can be secured by a variety of assets, including:

  • Accounts receivable
  • Equipment
  • Inventory
  • Property
Get Started

Asset-Based Lending

1-888-440-4541

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This is where Tab Bank accelerates your cash flow

What are the Terms and Conditions of Asset-Based Loans?

The terms and conditions of asset-based loans vary greatly depending on the value and type of asset that is provided as security. Highly liquid collateral, or securities that can be easily and readily converted to cash, are the preferred type of assets.

Because asset-based loans carry a substantial amount of risk for the lender, the maximum amount of the loan will typically be less than the book value of the assets. The difference in the amount of the asset loan and the actual book value of the securities represents the cost of converting it into cash along with the potential loss in market value.

Stable small and mid-sized businesses that own physical assets are the most common asset-based borrowers. Large corporations also seek out asset-based credit lines, usually to cover short term needs or an extremely time-sensitive cash demand.

What’s the Difference Between Asset-Based Lending and Traditional Financing?

Asset-based lending offers many benefits over traditional forms of financing, including:

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With asset-based lending, your business has broad use of proceeds and it can cover financial needs such as:
  • Management buyouts
  • Rapid growth
  • Working capital
  • Seasonal financial needs
  • Debt refinancing
  • Acquisitions and mergers
  • Recapitalizations
  • Capital expenditures
  • Restructurings
  • Turnarounds.
With asset-based loans.

There are minimal financial covenants and the emphasis lies on the performance of the collateral.

Your source of capital is more predictable.

Because the borrowing availability is directly tied to the assets of your company, which can maximize liquidity. This is in stark contrast to borrowing against multiple earnings (EBITDA) – which is often more volatile.

Asset-based lending can act as a revolving line of credit.

Because more funds can be re-borrowed as repayments are made.

Eligibility for asset loans.

Is determined by advance rates against eligible inventory, collateral, and the performance and quality of that collateral.

Accounts Receivable Financing

Accounts receivable financing allows you to capitalize on growth opportunities through the money that is owed to your business.
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Invoice Factoring

Invoice factoring allows you to cash in your invoices to access working capital sooner rather than later.
Click to Learn More

Equipment Financing

Equipment financing allows you to increase profit margins by having the right semi-trucks and trailers it takes to get the job done
Click to Learn More

How to Get an Asset-Based Loan from TAB

Are you looking for a more flexible type of business financing? Traditional financing is rigid, static, and unimaginative. When you get started with asset-based lending from TAB Bank, we can be more creative in the way that we look at your business.

Instead of focusing only on your cash flow and balance sheet – with asset-based loans we look at your accounts receivable, inventory, and some of your equipment. With this business financial information, we can provide maximum liquidity with minimum asset-based loan rates.

Commercial finance plans from TAB Bank are custom-tailored to meet the specific needs of your business. For more than 20 years, we have been working alongside businesses, just like yours, to help them meet their company goals. We look forward to doing the same for you. In addition to asset-based lending, we provide other financial services for businesses.

Reap the Benefits of Asset Lending from TAB Bank

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TAB Bank has the resources you need.

Many other asset-based lending banks do not have near the experience in the industry or the available resources as TAB Bank does.

Commercial finance can maximize your liquidity.

By using your assets as collateral, you can reap the full benefits of your investments.

There are minimal financial covenants with asset loans.

Financial covenants, or the ratios a borrower is required to stay above or below, are very minimal with TAB Bank’s asset-based lending.

Asset-based lines of credit from TAB Bank can scale with your business.

There’s no need to open several different lending avenues, your available credit grows as your business does the same.

Enjoy personalized experiences with dedicated relationship managers.

At TAB Bank, we take our commitment to customer satisfaction to heart. You will have an experienced relationship manager that will look specifically at your business and help you secure the asset-based loans that are right for you.

Enjoy easy and secure online banking access.

TAB Bank is proud to be a bank that has always operated in the digital space. As part of that commitment, we ensure the digital-based solutions that we provide are fluid, easy to navigate, and secure.

Only pay interest on the money you’ve borrowed.

TAB Bank only applies interest fees to the line utilization.

Enjoy the flexible options for advances and repayments.

You can make advances and repayments during any time of the loan term.

Get started with an Asset-Based Loan from TAB Bank:  1-888-440-4541
Get Started

Asset-Based Lending

1-888-440-4541

Please complete all fields below.

INTERIDE'S STORY

“They understand.”

After enduring a rocky relationship with an out-of-state bank for four years, Interide Transportation decided it was time for a change. After partnering with TAB Bank, Steven Gadd, a co-owner of Interide, said, “…it honestly felt like we had died and went to heaven.” Interide recently needed a large letter of credit and sought the help of both its traditional bank and TAB Bank. Not only did Interide’s traditional bank respond with a rejection, but it took three weeks and phone call from Gadd to get the answer. However, Interide’s experience with TAB Bank was different. “Our banker at TAB absolutely went to work. He got very creative and he made it happen with his creativity and aggressiveness.” Gadd recommends trucking companies should partner with TAB Bank simply because “they understand trucking.”

WHAT OUR CUSTOMERS SAY

Mary, Vice President, Finance Company

“TAB Bank has a very dedicated team of professionals who have provided our business with a great experience. They have been quick to help support the growth of our company and continue to work hard for our company.”

Lisa, CFO, Technology Company

“As far as TAB Bank goes, I don’t know what I would do without them. They have definitely made a big difference in our business.”

Dave, President, Distribution Company

“Our experience with TAB Bank has been very positive. In today’s economy, it is reassuring to know that there are still financial institutions out in the market that clearly understand the needs and challenges that smaller middle market companies face on a daily basis.”

Bob, Vice President, Manufacturing Company

“I’m not stuck behind a bureaucratic wall of impersonality. We can interact and solve problems in very clear language and make things happen. That’s why I like TAB.”

Mark, President, Manufacturing Company

“Our experience in working with TAB Bank can be summed up in two words – proactive partnership. Without a doubt, TAB Bank is a different bank that makes a difference. Our company is pleased to be working with them.”

Greg, CFO, Transportation Company

“One of the unique things about TAB Bank is that they are a bank that specializes in trucking – at a much higher level than any other bank.”

TAB NEWS