Cole Taylor Business Capital (CTBC) provides creative asset-based financing to middle-market companies throughout the United States, primarily with needs related to acquisitions, dividend recapitalizations, growth, debt restructurings, debtor-in-possesion, and turnarounds. CTBC provides flexible structures that include revolving lines of credit supported by accounts receivable and inventory and term loans, supported by equipment and real estate. We will also consider short-term structured over-advances in selected circumstances.

What is Asset Based Lending (ABL)?

• A loan generally secured by accounts receivable inventory, equipment, and/or real estate
  
• Financing is governed by a borrowing base based on asset values
  
• Lenders are typically focused on liquidity and asset conversion to cash as primary source of repayment
  
• Structures include revolvers supported by working capital assets and term loans supported by fixed assets
  

Why Use Asset Based Loans?

• Limited and more flexible covenants, typically based on asset coverage and liquidity
  
• Leverage tolerance for asset-rich borrowers is greater than permitted by "traditional" lending
  
• ABL works well in combination with other junior financing alternatives (second lien, mezz, high yield)
  
• Efficient borrowing mechanics, which allow for paydown and reborrowing of funds when needed, thus limiting interest expense
  

Who Uses Asset Based Loans?

• Companies with growth opportunities
  
• Working capital intensive companies
  
• Financial sponsors looking for acquisitions
  
• High quality, asset-rich companies


• Seasonal or cyclical businesses
• Companies undergoing turnarounds
  

When to Use Asset Based Loans?

• Acquisitions
  
• Working capital growth
  
• Debt restructurings
  
• Turnarounds
  
• Debtor-in-Possession (DIP)/ Exit Financings
  
  

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