Asset-Based Lending

Unlock working capital and increase liquidity

Serving companies by leveraging assets

Asset-based lending, or ABL, can help you improve earnings by leveraging your accounts receivable, inventory or fixed assets as collateral. Our team of seasoned professionals has a dependable reputation and proven experience in structuring, underwriting and managing asset-based financing transactions across multiple industries and asset classes.

Ready to get started? Let's talk about asset-based lending.

Put our experience to work for you
ABL Finance Products and Services

Asset-based lending for all the stages of your business

Our ABL solutions meet clients' working capital needs. Our innovative structures can help to reduce funding costs, improve earnings and lower operational risks by leveraging accounts receivable, inventory or fixed assets as collateral.

We serve a wide range of industries, including automotive, manufacturing, retail and consumer products.

  • Working capital
  • Turnarounds
  • Acquisition financing
  • Growth capital
  • Recapitalizations
  • Debt refinancing
  • Management buyouts
  • Lender financing

Asset-based loans

  • Senior revolving lines of credit based on valuation of inventory and receivables, and term loans based on valuation of fixed assets such as machinery, equipment and real estate
  • Loans against intellectual property, including appraised trademarks, tradenames, licenses, royalties and pharmacy scripts

Select stretch asset-based loans and hybrid structures

  • Senior secured revolving and term financing with advances beyond traditional ABL advance rates
  • Reliance on cash flow and traditional asset-based analytics

OBS, SPV and SPE

  • Off-balance-sheet—or OBS—receivables financing
  • Special-Purpose Entities, or SPE
  • Special-Purpose Vehicles, or SPV

Expanded asset-based lending capabilities
CIT Northbridge Credit

Knowledge and experience to structure your success

CIT Northbridge CreditD, as advised by First Citizens Institutional Asset Management, LLC, delivers a broad range of flexible asset-based debt solutions backed by years of expertise.

We can provide revolving and term loan commitments from $15 million to $150 million to companies across various industries and business cycles.

logo CIT Northbridge Credit | Managed by First Citizens Institutional Asset Management LLC

What we offer

  • Working capital revolving credit
  • Turnaround debt
  • Acquisition financing
  • Growth capital
  • Refinancing and restructuring
  • DIP financing
  • Management buyouts
  • Bridge financing

Products and services

  • Asset-based revolving lines of credit
  • Term loans
  • Capital expenditure loans
  • Asset-based stretch hybrid structures
  • Delayed-draw capital expenditure loans

Industry applications

  • Manufacturing
  • Distribution
  • Retail
  • Equipment rental
  • Temporary staffing
  • Transportation and logistics
  • Commercial services

Asset-based lending FAQ
People often ask us

Asset-based lending, or ABL, refers to the business practice of loaning money through secured collateral to serve business needs. An asset-based loan or line of credit may be secured by leveraging accounts receivable, inventory or fixed assets as collateral.

Asset-based lending allows a borrower to access the value of its working capital assets, usually at a lower cost, providing flexibility and quick access for their funding needs. Asset-based loans are often easier to obtain than traditional loans and lines of credit.

Our ABL finance team serves a wide range of industries, including:

  • Manufacturers
  • Wholesalers and distributors
  • Business services
  • Retailers and internet sellers
  • Consumer product companies
  • Metals
  • Automotive
  • Equipment rental companies
  • Transportation

Facility sizes range from $15 million to more than $200 million, with typical advance rates in the range of:

  • 85% to 90% of eligible accounts receivable
  • 85% to 90% of inventory net orderly liquidation value, or NOLV
  • 80% of M&E NOLV
  • 50% of intangibles NOLV
  • 70% of real estate appraised FMV

In most cases, we lend against accounts receivable and inventory. However, businesses can also use machinery and equipment, real estate, and intellectual property, such as patents or trademarks, as part of their borrowing base.

We offer both regulated asset-based lending and unregulated and, through CIT Northbridge, unconsolidated asset-based lending.

Yes. You can deduct the interest on a loan if the proceeds were used to generate taxable income. If tax-exempt investments are used as collateral for the loan, or the loan is used to pay for tax-exempt investments, none of the interest paid will be deductible. Consult with your tax advisor to make sure you're compliant with tax regulations and to maximize savings.

Account openings and credit are subject to bank approval.

Your investments in securities and insurance products and services are not insured by the FDIC or any other federal government agency and may lose value.  They are not deposits or other obligations of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amounts invested. There is no guarantee that a strategy will achieve its objective.

About the Entities, Brands and Services Offered: First Citizens Wealth™ (FCW) is a marketing brand of First Citizens BancShares, Inc., a bank holding company. The following affiliates of First Citizens BancShares are the entities through which FCW products are offered. Brokerage products and services are offered through First Citizens Investor Services, Inc. ("FCIS"), a registered broker-dealer, Member FINRA and SIPC. Advisory services are offered through FCIS, First Citizens Asset Management, Inc. and SVB Wealth LLC, all SEC registered investment advisors. Certain brokerage and advisory products and services may not be available from all investment professionals, in all jurisdictions or to all investors. Insurance products and services are offered through FCIS, a licensed insurance agency. Banking, lending, trust products and services, and certain insurance products and services are offered by First-Citizens Bank & Trust Company, Member FDIC, and an Equal Housing Lender, and SVB, a division of First-Citizens Bank & Trust Company. icon: sys-ehl

For more information about FCIS, FCAM or SVBW and its investment professionals, visit FirstCitizens.com/Wealth/Disclosures.

See more about First Citizens Investor Services, Inc. and our investment professionals at FINRA BrokerCheck.

CIT Northbridge is a joint venture between Allstate and First Citizens Bank that leverages CIT's strong brand, extensive experience and competency in providing higher-yielding asset-based loans and Allstate Investments' expertise and capital.

Account openings and credit are subject to bank approval.

Not all applicants will qualify for financing. All finance programs and rates are subject to final approval by First Citizens and are subject to change at any time without notice. Supporting financial documentation may be required for any transaction with First Citizens. If a transaction is more than $500,000, supporting financial documentation will be required.

Links to third-party websites may have a privacy policy different from First Citizens Bank and may provide less security than this website. First Citizens Bank and its affiliates are not responsible for the products, services and content on any third-party website.

Bank deposit products are offered by First Citizens Bank. Member FDIC and an Equal Housing Lender. icon: sys-ehl.

NMLSR ID 503941