Asset-based Lending at First National of Nebraska

First National of Nebraska offers a tailored Asset-based Lending (ABL) solution designed for growing businesses that require flexible, scalable financing secured by company collateral. Our ABL product combines competitive pricing, hands-on service, and a deep understanding of working capital dynamics to help middle-market and commercial clients improve liquidity, fund expansion, manage seasonal cycles, and support acquisitions.

Overview

Asset-based lending is a financing structure where loans are secured by company assets such as accounts receivable, inventory, equipment, and sometimes real estate. Unlike traditional cash-flow lending, ABL emphasizes the value and liquidity of collateral. First National of Nebraska evaluates asset quality, concentration, and collectability to establish borrowing bases and advance rates that reflect the actual collateral position of each borrower.

Key Benefits

• Improved Liquidity: Convert eligible assets into immediate working capital to support operations, payroll, and supplier payments.
• Flexible Capacity: Borrowing capacity grows and contracts with the value of your receivables and inventory, making it ideal for seasonal businesses or rapid growth phases.
• Competitive Pricing: Customized pricing structures that reflect the risk profile and long-term relationship with the bank.
• Strategic Support: Dedicated relationship managers provide proactive treasury, cash management, and operational guidance to optimize cash flow and collateral performance.
• Support for Transactions: ABL can be structured to support acquisitions, capital expenditures, or recapitalizations without diluting ownership.

Typical Collateral Types

First National of Nebraska structures facilities against a variety of collateral types, including:

• Accounts receivable (domestic and, in some cases, foreign)
• Finished goods, work-in-process, and raw material inventory
• Machinery and equipment
• Letter-of-credit-supported foreign receivables
• Real estate (as part of a blended facility when appropriate)

Who Benefits Most

Asset-based lending is particularly well-suited to manufacturers, distributors, wholesalers, and service companies that possess tangible, verifiable assets but may have uneven cash flow or limited access to traditional unsecured financing. Companies experiencing rapid growth, undergoing transition, or executing strategic deals frequently rely on ABL for predictable and expandable financing capacity.

Structure and Features

Each ABL facility is customized. Typical elements include an advance rate applied to a borrowing base, a standby or revolving component, term loans for capital investments, and an active reporting cadence. Advance rates depend on asset type and quality—for example, higher advance rates on receivables from creditworthy customers and lower rates on aged inventory. Regular reporting and collateral monitoring ensure transparency and timely adjustments to borrowing capacity.

Process and Timeline

The onboarding process at First National of Nebraska is efficient and collaborative:

1. Initial Assessment: A relationship manager evaluates financials, collateral, and business goals to recommend an appropriate structure.
2. Due Diligence: Verification of receivables, inventory audits, and site visits where necessary to establish borrowing base assumptions and documentation requirements.
3. Documentation: Loan agreements, security instruments, and reporting templates are prepared with clear covenants and operational guidelines.
4. Funding: Once the borrowing base is established and documentation is complete, the facility funds and ongoing reporting begins.

Ongoing Service and Risk Management

First National of Nebraska emphasizes active partnership. Relationship teams provide periodic reviews of collateral performance, recommend process improvements, and align cash management solutions to maximize borrowing capacity and minimize risk. Risk management tools include concentration limits, receivables aging controls, and inventory reserves tailored to each industry and company profile.

Documentation and Reporting

Borrowers typically provide monthly or weekly collateral reports, aged receivables listings, inventory reconciliations, and interim financial statements. These reporting requirements create transparency and predictable borrowing base calculations, helping management forecast liquidity needs more accurately.

Why Choose First National of Nebraska

• Local Expertise, National Capability: Deep regional market knowledge paired with broad banking resources to support complex transactions.
• Customized Solutions: Facilities structured to reflect your industry dynamics and growth objectives.
• Responsive Relationship Management: Dedicated teams that act as extensions of your finance function, providing proactive guidance.
• Transparent Processes: Clear covenants, straightforward reporting, and collaborative underwriting reduce surprises and support long-term planning.

Conclusion

Asset-based Lending at First National of Nebraska offers a pragmatic, scalable financing option for companies that need reliable working capital tied to tangible assets. Combining flexible structures, attentive service, and disciplined risk management, our ABL solutions are designed to support growth, smooth seasonal fluctuations, and enable strategic initiatives. Contact our team to explore how an asset-based facility can be structured to meet your company’s specific cash flow and expansion needs.

Address Bank: Omaha, Nebraska, United States
Bank: First National of Nebraska
Headquarters: Omaha
Products: Loans & Credit
Type: Asset-Based Lending