Insights

Graphic:

Wells Fargo | Commercial Banking logo

Graphic:

Help to grow your business with an Asset-Based Loan

Voiceover:

In today’s dynamic business environment, choosing the right sources of capital can create a competitive advantage for your company.

If you’re ready to grow your business, free up more working capital, maximize your borrowing capacity, or simply operate more efficiently, an asset-based loan can be a smart alternative to consider.

Graphic:

grow your business

free up working capital

maximize borrowing capacity

operate more efficiently

Asset-Based Loan (ABL)

Voiceover:

Asset-based loans let companies borrow against collateral, such as your existing accounts receivable, your inventory, company real estate, or specified fixed assets.

Graphic:

Accounts receivable

Inventory

Real estate

Fixed assets

Voiceover:

A manufacturer, for example, faced with temporary supply chain disruptions, could use an asset-based loan to bridge their short-term need to finance their working capital.

Graphic:

A manufacturer could potentially use an ABL to bridge their short-term need to finance their working capital.

Voiceover:

In this example, their accounts receivables, physical inventory and potentially even certain equipment could serve as collateral.

Graphic:

Collateral

Accounts receivable

Physical inventory

Equipment

Voiceover:

An asset-based loan can be ideal for businesses with strong and diverse assets, at any stage in the company’s lifecycle.

Unlike other types of loans, your company’s credit rating and future cash flow are not primary determining factors.

Graphic:

Cycle of: Early state > Growth > Expansion > Mature > Transition

Center of cycle: ABL // Strategic debt/equity // Capital expenditures // Acquisition MBO // Refinance/restructure // Turnaround, exit

Graphic:

Credit rating & cash flow

Voiceover:

Many businesses use an asset-based loan to fund significant growth, expand operations, secure resources, or even acquire another business.

Graphic:

 Why use an Asset-Based Loan?

• Fund significant growth
• Expand operations
• Secure resources
• Acquire another business

Voiceover:

Others use an asset-based loan to supplement working capital during uneven cash flow cycles or seasonal shifts in business.

Graphic:

Supplement working capital

Asset-Based Loan

Voiceover:

A typical asset-based loan is generally structured as a revolving line of credit and may also include an amortizing term loan. Your assets’ values determine the total amount you may borrow. 

Graphic:

ABL facilities have a borrowing base determined by the advance rate on each collateral type

Bar graph: $100M borrowing base; $85M loan; $15M available to borrow

Voiceover:

The benefits of asset-based loans are clear:

Graphic:

ABL potential benefits

Voiceover:

they’re widely available, provide maximum liquidity and are open to a variety of business types. This means companies can address their liquidity needs quickly. Asset-based loans feature competitive pricing, tied to the strength of your assets. They often have fewer covenants compared to conventional cash flow loans, making them a smart and flexible alternative to consider.

Graphic:

• Widely available
• Provide maximum liquidity
• Open to a variety of businesses
• Competitive pricing
• Fewer covenants
• Smart & flexible

Voiceover:

Are you ready for what’s next in your business?

Graphic:

Are you ready?

Voiceover:

Ask our team of financial specialists whether an asset-based loan can help you meet your goals.

Graphic:

Contact us today 

Wells Fargo

©2025 Wells Fargo. Member FDIC.

Commercial Banking products and services are provided by Wells Fargo Bank, N.A. and its subsidiaries and affiliates. Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company, is not liable or responsible for obligations of its affiliates. Deposits held in non-U.S. branches are not FDIC insured. Products and services require credit approval.

Products and services require credit approval. Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries.

[Graphic]

Simplify, innovate, and thrive.

[Voiceover]

Adopting instant payments as part of your business strategy can help simplify financial transactions and give you a competitive advantage. If you aren’t already thinking about these innovative payment platforms, you may be missing opportunities.

[Graphic]

Instant payments:

• 24/7/365 convenience
• Lightning-fast settlement
• Built-in flexibility

[Voiceover]

Instant payments are contextual, immediately available, and can reduce the manual handling of complex transactions, offering convenience and flexibility.

[Graphic]

Instant payment methods:

• FedNow
• RTP®
• Push to card
• Zelle

RTP® is a registered service mark of The Clearing House Payments Company L.L.C.

Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

For your protection, Zelle should only be used for sending money to customers and vendors who you trust.

[Voiceover]

There are many methods you can use to integrate instant payments. What’s most important is that you use them in a way that works for your business.

[Graphic]

• Revenue
• Customer experience
• Operational efficiency

[Voiceover]

The right payment platforms and providers can help drive new revenue growth, improve your customer experience and even enhance operational efficiency.

[Graphic]

Where are your opportunities?

[Voiceover]

Consider the following opportunities for your organization to incorporate instant payments into your business strategy.

[Graphic]

Strengthen business relationships

[Voiceover]

Instant payments help you move toward complete digital transactions. By reducing cash and checks and providing faster settlement, you can strengthen your relationships with your vendors and suppliers.

[Graphic]

Pay your supplier and contract workers instantly  

[Voiceover]

With the ease of digital convenience, you can pay your suppliers instantly when needed.

[Graphic]

Reduce paperwork and follow-up required for reconciliation

[Voiceover]

And with the strong remittance data built into instant payments, you reduce the amount of paperwork and follow-up required for reconciliation.

[Graphic]

Delight your customers with speed and convenience  

[Voiceover]

In today’s world, your customers most likely expect quick response and immediate action. Instant payments can be a strategic tool to help meet those expectations.

[Graphic]

Critical payments and on-demand transactions

[Voiceover]

For example, a customer can pay at their convenience, choosing when and how they pay.

[Graphic]

Instant refunds and adjustments

[Voiceover]

And you can build a secure customer service process for quicker refunds when needed.

[Graphic]

Offer easy upgrades

[Voiceover]

Instant payments can also help facilitate online purchases, upgrades and enhancements for your customers.

[Graphic]

Simplify life for your valued employees

[Voiceover]

Instant payments promote efficiency and simplify tasks for employees.

[Graphic]

Real-time payments for workers give you a competitive edge

[Voiceover]

Tasks such as paying contract workers can be completely digital, so payments are made in real time. That gives you an edge when competing for these workers.

[Graphic]

Disburse per diems safely, quickly

[Voiceover]

You can also automate and track per diems for travel – reducing complications associated with lost, stolen, or misplaced cash or checks.

Internally and externally, instant payments have the power to transform your business.

Wells Fargo can work with you to explore best practices and strategic ways to incorporate instant payments in your organization.

[Graphic]

Simplify, innovate, and thrive.

Instant Payment Simplified^SM

Wells Fargo

©2024 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.

Global Treasury Management products and services are provided by Wells Fargo Bank, N.A. Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company. Wells Fargo Bank, N.A. is not liable or responsible for obligations of its affiliates.

Deposits held in non-U.S. branches, subsidiaries or affiliates are not FDIC or CDIC insured. Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.