Asset-based Lending at United Bank (West Virginia)

Asset-based lending (ABL) from United Bank in West Virginia delivers a practical, flexible financing solution for companies that need working capital, growth funding, acquisition financing, or balance sheet restructuring. Designed for businesses whose balance sheets are rich in tangible assets — accounts receivable, inventory, equipment, and real estate — this product provides borrowing capacity tied to the value of eligible collateral, enabling management to unlock liquidity while maintaining operational control.

Key Features

• Collateral-driven credit facilities: Lines of credit and term loans secured primarily by accounts receivable, inventory, machinery and equipment, and other eligible assets.
• Flexible advance rates: Borrowing capacity is determined by periodic valuation of collateral and calculated as a percentage of eligible balances.
• Customized structures: Revolving credit, seasonal facilities, term financing, acquisition financing, and floorplan arrangements can be combined to meet business needs.
• Local decision-making: Relationship-oriented underwriting that considers industry dynamics and company-specific strengths.
• Operational support and monitoring: Regular reporting, borrowing base certificates, and collateral control mechanisms to keep the line aligned with business realities.

Benefits for Your Business

• Improved liquidity: Convert receivables and inventory into accessible cash to fund payroll, supplier payments, inventory purchases, and growth initiatives.
• Scalable financing: As eligible assets grow, available credit can expand, supporting seasonal sales or rapid growth without repeated credit applications.
• Flexible use of proceeds: Funds can be used for working capital, capital expenditures, acquisitions, refinancing higher-cost debt, or other general corporate purposes consistent with the facility.
• Preserve equity and ownership: Asset-secured lending is an alternative to equity dilution and can be less costly than unsecured credit.
• Predictable cash management: Structured reporting and borrowing base mechanics provide clarity on available borrowing power and timing.

Who Should Consider Asset-based Lending?

ABL is well-suited for middle-market and emerging growth companies across a range of industries, including manufacturing, distribution, wholesale trade, retail, construction, professional services with receivables, and companies in transition or turnaround situations. It is especially valuable for firms that:

• Have significant working capital tied up in receivables and inventory.
• Require seasonal financing or need to support rapid growth.
• Seek acquisition financing where the target’s assets provide collateral support.
• Are improving operations and need liquidity to execute a turnaround plan.

Types of Collateral Accepted

Collateral types commonly accepted in ABL facilities include:

• Accounts receivable (domestic, eligible concentrations reviewed)
• Finished goods and raw material inventory
• Machinery and equipment
• Commercial real estate or mortgage participation (where applicable)
• Eligible intellectual property or contract rights in specific cases

How the Asset-based Lending Process Works

1. Initial assessment: A preliminary review of financial statements, collateral quality, customer concentration, and industry risks.
2. Valuation and structure design: Determine eligible collateral categories and establish advance rates and covenants tailored to the business.
3. Documentation and closing: Prepare security agreements, control arrangements, and loan documents to protect both borrower and lender interests.
4. Ongoing monitoring: Borrowing base certificates, periodic field examinations, and reporting requirements ensure the facility remains aligned with collateral value.
5. Flexible adjustments: As the business grows or changes, terms and advance levels can be adjusted through regular reviews.

Typical Documentation and Administration

An ABL facility is supported by clear documentation that defines eligible collateral, reporting obligations, and events of default. Typical administrative elements include:

• Borrowing base certificate and aging reports for receivables
• Periodic inventory reports and, where appropriate, physical inspections
• UCC filings and perfection of security interests
• Cash management controls and lockbox arrangements as required
• Financial covenants tailored to company performance

Why Choose United Bank (West Virginia) for ABL?

United Bank combines regional expertise with a relationship-driven approach to deliver asset-based lending solutions that reflect the realities of local businesses. Clients benefit from experienced credit teams that work collaboratively to structure facilities that balance flexibility with disciplined risk management. The result is practical financing that supports growth, stabilizes operations, and enables strategic initiatives without unnecessary complexity.

Common Use Cases

• Working capital lines to support seasonal sales spikes
• Financing inventory buildup for peak selling periods
• Acquisition financing where the transaction is asset-supported
• Liquidity for turnaround situations or restructuring
• Funding capital expenditures while preserving cash flow

Frequently Asked Questions

Does ABL replace traditional bank loans? Not necessarily — it complements traditional lending by aligning borrowing capacity with asset values. Many companies use a combination of asset-based and term financing to achieve their objectives.

How often is collateral revalued? Collateral is typically monitored on a recurring schedule, often monthly, through borrowing base reporting and periodic examinations.

Is ABL suitable for small businesses? ABL is most efficient for businesses with material collateral values and recurring operations; smaller firms with minimal receivables or inventory may find alternative financing more appropriate.

Next Steps

To explore whether an asset-based lending facility is a fit for your company, consider preparing a current balance sheet, recent accounts receivable and inventory summaries, and a brief overview of your growth plans. A preliminary discussion with an experienced lender can clarify structure options and potential next steps toward a customized financing solution.

United Bank (West Virginia) approaches asset-based lending as a strategic tool — unlocking working capital to help businesses operate more effectively, respond to opportunities, and pursue long-term growth.

Address Bank: Charleston, West Virginia, United States Fairfax, Virginia, United States
Bank: United Bank (West Virginia)
Headquarters: Charleston, West Virginia
Products: Loans & Credit
Type: Asset-Based Lending