Asset-based Lending at BankUnited

Asset-based lending (ABL) at BankUnited is a tailored financing solution that leverages a company’s tangible assets to provide flexible working capital and growth financing. Designed for businesses that need predictable liquidity, fast access to capital, and lending structures aligned with operational cycles, BankUnited’s ABL programs combine practical underwriting, responsive service, and industry expertise to help companies manage cash flow, finance growth, and navigate transitions with confidence.

Who benefits from Asset-based Lending?

ABL is ideal for mid-market and growth-oriented companies across industries such as manufacturing, distribution, retail, healthcare, staffing, construction, and business services. Businesses experiencing seasonal revenue swings, undergoing rapid expansion, pursuing acquisitions, or converting non-cash assets into working capital can all benefit. It is also a solid option for companies with strong asset bases but limited access to unsecured or traditional cash-flow lending.

Core features and structure

• Collateral-based borrowing base: Advances are determined by an agreed borrowing base formula, typically based on eligible accounts receivable, inventory, equipment, and certain real estate.
• Revolving and term components: Facilities can include a revolving line for working capital and term loans for capital expenditures, acquisitions, or one-time needs.
• Flexible advance rates: Advance rates are tailored to collateral quality and industry norms, providing higher availability on well-documented receivables and select inventory categories.
• Seasonal and swingline options: Structures can include seasonal capacity and short-term immediate funding to address cash flow peaks and troughs.
• Letters of credit and foreign exchange support: Where appropriate, ABL facilities can be structured to support trade needs and mitigate international payment risk.

Eligible collateral

BankUnited accepts a broad range of collateral types that are commonly found on the balance sheets of mid-market firms:

• Accounts receivable, including secured and verified customer invoices
• Inventory, including raw materials, finished goods, and certain warehoused inventory
• Machinery and equipment, with appraisals when required
• Select real estate and pledged cash or marketable securities
• Intangible value drivers may be considered as part of an overall underwriting assessment but are typically not the primary basis for advance rates

Benefits of choosing BankUnited’s ABL

• Immediate working capital: Converts receivables and inventory into usable cash to fund payroll, supplier payments, and daily operations.
• Scalable financing: Facility size adjusts to seasonality and business growth—borrowers access more capital as eligible asset balances rise.
• Operational flexibility: Structure supports acquisitions, capital expenditures, restructuring, and other strategic initiatives.
• Transparent and predictable terms: Clear borrowing base formulas and reporting cycles help companies plan cash flows with confidence.
• Industry knowledge: Dedicated teams bring sector-specific underwriting experience and practical advice to optimize collateral utilization.

Underwriting and risk management

BankUnited combines rigorous underwriting with pragmatic risk management. The underwriting process evaluates asset quality, concentration risk, customer creditworthiness, inventory turnover, and operational controls. Regular collateral monitoring, periodic audits, electronic reporting, and receivable verification help maintain facility integrity while enabling prompt availability of capital. Covenants are calibrated to align lender oversight with borrower operational realities, promoting partnership and long-term success.

Documentation and reporting

Documentation is structured to protect both the borrower and the lender while preserving operational efficiency. Common elements include security agreements, borrowing base certificates, availability calculations, and reporting templates. BankUnited supports streamlined reporting through digital portals and standardized formats to reduce administrative burden and accelerate availability. Borrowers receive clear monthly or weekly statements reflecting borrowing base activity and availability.

Servicing and relationship approach

BankUnited emphasizes collaborative relationships. Dedicated ABL relationship managers work closely with companies to understand their business drivers and design financing that complements management goals. The bank provides timely underwriting decisions, transparent fee and pricing structures, and ongoing advisory support for operational improvements that enhance borrowing capacity. This hands-on approach helps borrowers respond quickly to market opportunities and operational challenges.

Typical uses of proceeds

• Working capital to support day-to-day operations
• Support for rapid growth or seasonal demand
• Financing acquisitions and integrations
• Refinancing higher-cost debt
• Capital expenditures and equipment purchases

How the process works

The ABL onboarding process typically includes an initial consultation to evaluate asset composition and financing needs, a review of historical financials and collateral, and a proposed borrowing base structure. Once terms are agreed, documentation and security perfection proceed in parallel with implementation of reporting systems and any required controls. Facilities can often be put into place on an accelerated timetable when documentation and collateral reviews proceed smoothly.

Why choose this solution

Asset-based lending at BankUnited is suited for companies that prioritize liquidity, flexibility, and practical financing aligned with asset cycles. By converting balance sheet assets into reliable capital, businesses gain the financial capacity to invest in growth, manage volatility, and execute strategic initiatives. Combined with experienced underwriting, responsive service, and customizable structures, BankUnited’s ABL solutions provide a dependable financing foundation for companies seeking both stability and opportunity.

Final considerations

ABL is not a one-size-fits-all product; it requires careful alignment between collateral quality, operational practices, and business objectives. BankUnited’s approach centers on designing transparent, scalable facilities with a focus on long-term partnership. For businesses that value liquidity tied to hard assets and need a financing partner that understands industry dynamics, asset-based lending offers a pragmatic path to greater financial flexibility and operational resilience.

Address Bank: Miami Lakes, Florida, U.S., United States
Bank: BankUnited
Headquarters: Miami Lakes, Florida
Products: Loans & Credit
Type: Asset-Based Lending