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Asset-Based Lending

Use your business assets to capitalize on opportunities for growth.

The financing experts at First National Bank understand your needs and create solutions that suit your short- and long-term goals. We offer secured loans and lines of credit that can be collateralized by your equipment, real estate, accounts receivable or current inventory.

Asset-Based Lending

New Construction

You have accumulated business assets but need more working capital to fund the day-to-day costs of operations. These costs can make it hard to find cash for growth and investments.

Our asset-based lending team can provide greater financial flexibility by unlocking liquidity that a traditional revolving line of credit or term loan cannot.

What is Asset-Based Lending?

Asset-based financing is secured by leveraging a business asset to provide a line of credit or a term loan for a set amount of time. With the asset as collateral, you can borrow the cash you need to run your operations. FNB calculates the lendable value of the asset, then determines what you can borrow based on a percentage of that amount. Typical collateral used for asset-based loans includes:

  • Accounts receivable
  • Inventory
  • Machinery and equipment
  • Real estate

Types of Asset-Based Loans at FNB

We offer two types of asset-based loans:

Factors to Consider Before Pursuing an Asset-Based Loan

Not every business may benefit from an asset-based loan. Important things to know about these loans include:

  • Some business assets can’t be used as collateral. For example, receivables more than 90 days past due are typically considered ineligible assets when considering an asset-based loan. Foreign receivables are also generally considered ineligible, though we may be able to provide options to lend against these assets.
  • There may be more stringent reporting requirements. These loans are based on the value of your assets. You will need to report on those assets weekly or monthly, depending on the structure of your loan. Discuss these requirements with your lender to make sure you can meet them.

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