Global partner for global players
With a dynamic product, we offer the maximum amount of flexibility for clients with one of the most cost-effective ways to finance business lending. We take a fresh view—assets go beyond traditional current assets to include long-term assets such as machinery and equipment, rolling stock, intellectual property, and real estate.
Our size, our scale, our ability to provide meaningful capital, and our industry expertise are all reasons clients partner with us. We can structure multicurrency and multi-jurisdiction credit facilities in many places around the world.
Our products and services
As part of SMBC’s full product and service offerings, our Asset-Based Lending team takes the time to understand your business and structure a financing solution that allows you to maintain flexibility.
We work seamlessly with our product partners, including treasury management, lender finance, leasing and equipment finance, trade finance, commercial real estate, and capital markets, to provide a fully integrated solution to support a variety of business needs, such as:
- Working Capital
- Acquisition Financing
- Capital Expenditures
- Recapitalizations and Refinancing
- Debtor in Possession and Exit Financing (Selectively)
Unique structural advantages and benefits
Our facilities allow you, as the client, to borrow against your assets, with the borrowing capacity calculated periodically using advance rates against eligible collateral. Our facilities are ideal for companies with large balance sheets and significant levels of working capital, thin EBITDA margins, or unpredictable cash flows. Asset-Based Lending facilities are highly customizable to meet a client’s unique needs. A facility can be standalone or combined with other debt, such as a term loan, public or private debt offering, bond, etc.
Borrowing against assets results in a cost-effective and highly flexible source of capital with a number of distinct benefits to meet clients’ needs. We truly have you covered.
Asset-Based Lending is often the lowest cost of capital.
No Financial Maintenance Covenants
Unlike other sources of capital, performing credits typically have springing financial covenants.
As borrowing capacity changes, an Asset-Based Lending facility can easily adapt to meet a client’s needs, including seasonal advances, if appropriate.
Ability to Leverage Diverse Assets
We provide maximum access to capital by customizing advance rates and limits to leverage a variety of asset classes, including working capital, fixed assets, and intangible assets.
- Cash & Liquid Securities
- Accounts Receivable
- Inventory Machinery and Equipment
- Rental Equipment
- Rolling Stock—trucks, trailers, and chassis
- Real Estate
- Trademarks & Other Intellectual Property
Permitting Restricted Payments
An Asset-Based Lending facility typically provides the most flexible restricted payment terms regarding paying dividends or management fees, repurchasing equity or prepaying other debt.
Highly Customizable Structures
Asset-Based Lending can be standalone or partnered with a Term Loan A, Term Loan B, second lien facility, bond, etc., to meet domestic, international, and multicurrency needs.