Asset-based Lending at United Community Bank

United Community Bank’s asset-based lending (ABL) solutions are designed to support companies that need flexible working capital, growth financing, or turnaround support by leveraging tangible assets on the balance sheet. Our ABL products focus on maximizing borrowing capacity against accounts receivable, inventory, equipment, and certain real estate, providing predictable liquidity for businesses with asset-rich but cash-constrained operations.

Who benefits from asset-based lending?

Asset-based lending is ideal for middle-market manufacturers, distributors, wholesalers, transportation firms, and companies in seasonal or cyclical industries. It’s particularly valuable for businesses experiencing rapid growth, undergoing restructuring, or seeking a reliable financing bridge between equity events. Companies with strong asset coverage but limited traditional covenant-based credit profiles can often qualify for ABL when other loans are unavailable.

Key features

• Borrowing base facility: Credit is established against a regularly calculated borrowing base comprised of eligible accounts receivable, inventory, and equipment, allowing borrowing capacity to expand and contract with business activity.
• Revolving lines and term components: Facilities can be structured as revolving credit lines, term loans, or a combination tailored to working capital needs and capital expenditures.
• Competitive advance rates: Advance rates are based on asset types—higher advances for prime receivables and liquid inventory, lower advances for slow-moving or riskier assets.
• Seasonal and swingline options: Seasonal borrowing features and short-term swingline loans can be included to address predictable cash flow variability.
• Flexible covenants: Covenants and reporting requirements are structured to match the operational realities of your business, with a focus on asset monitoring rather than purely on earnings metrics.

Benefits of choosing United Community Bank’s ABL

• Improved liquidity: Convert working capital assets into immediate cash to fund day-to-day operations, payroll, and supplier obligations.
• Growth enablement: Access capital to finance new contracts, inventory buildup, geographic expansion, and strategic investments without diluting ownership.
• Predictable financing costs: Transparent pricing and predictable interest structure help with cash flow planning and margin management.
• Customized structuring: Solutions are tailored to your business cycle, asset mix, and growth objectives to align with operational realities.
• Relationship-driven underwriting: Experienced bankers work closely with management to understand business drivers and design pragmatic reporting and collection approaches.

Collateral and eligible assets

United Community Bank accepts a broad range of collateral types, subject to due diligence and valuation: accounts receivable (domestic and, in some cases, foreign), finished goods inventory, raw materials and work-in-process, machinery and equipment, and select commercial real estate. Eligible receivables typically must be from creditworthy customers and free of third-party liens. Inventory advance rates vary by product type and turnover characteristics.

Underwriting and documentation

Our underwriting process emphasizes accurate asset valuation, thorough legal perfection, and operational controls to protect both lender and borrower. Standard documentation may include a borrowing base certificate, security agreements, UCC filings, accounts receivable aging reports, inventory reports, and periodic field examinations or audits. We work efficiently to minimize disruption and streamline onboarding.

How the process works

1. Initial consultation: Review of financial statements, asset composition, customer base, and business plan to assess suitability.
2. Due diligence: Detailed review of receivables, inventory, collateral, and legal structure, plus site visits where appropriate.
3. Facility design: Structure the borrowing base, advance rates, covenants, and reporting cadence to match working capital needs.
4. Documentation and closing: Execute security agreements, perfection filings, and any ancillary documentation required.
5. Ongoing administration: Regular borrowing base reporting, periodic audits, and proactive relationship management to adapt the facility as your business evolves.

Risk management and controls

Strong operational controls and transparent reporting are integral to a successful ABL relationship. United Community Bank emphasizes rigorous credit administration: verified invoicing, centralized cash collection where appropriate, reserve structures for disputed receivables, and inventory controls. Regular communication and timely exception handling help preserve borrowing capacity and maintain liquidity during periods of volatility.

Common use cases

• Financing rapid growth tied to new customer contracts or seasonal demand.
• Supporting restructuring or turnaround efforts where traditional EBITDA-based financing is constrained.
• Financing working capital during supply chain delays or extended payment terms.
• Acquisition financing combined with asset-based limits to bridge near-term liquidity needs.

Why work with United Community Bank?

Our team combines deep credit expertise with hands-on experience across industries, offering practical, responsive financing that aligns with business realities. We focus on building long-term partnerships, providing transparent terms, and adapting solutions as your company grows or transitions. With an asset-based lending facility from United Community Bank, businesses gain the financial flexibility to pursue opportunities, manage cycles, and stabilize operations while maintaining control and focus on execution.

If your company relies on tangible assets and needs working capital that flexes with business activity, asset-based lending at United Community Bank offers a pragmatic path to liquidity and growth.

Address Bank: Greenville, South Carolina, United States
Bank: United Community Bank
Headquarters: Greenville, South Carolina
Products: Loans & Credit
Type: Asset-Based Lending