Insights

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Wells Fargo | Commercial Banking logo

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Help to grow your business with an Asset-Based Loan

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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.

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grow your business

free up working capital

maximize borrowing capacity

operate more efficiently

Asset-Based Loan (ABL)

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

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Accounts receivable

Inventory

Real estate

Fixed assets

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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.

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

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

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Collateral

Accounts receivable

Physical inventory

Equipment

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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.

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

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

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Credit rating & cash flow

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

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 Why use an Asset-Based Loan?

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

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

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Supplement working capital

Asset-Based Loan

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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. 

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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

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The benefits of asset-based loans are clear:

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ABL potential benefits

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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.

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

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

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Are you ready?

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

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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.

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As your business evolves, having the right banking partner matters.

Wells Fargo Commercial Banking brings together market leading solutions, industry experience, and insights, delivered by bankers who live and work in the communities they serve.

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Commercial Banking at Wells Fargo

Market leading solutions

Industry experience & insights

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As a leading bank serving companies across many industries, your dedicated banker provides insights that support decision making and sustainable growth.

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Healthcare
Technology
Food & Agribusiness
Manufacturing
Real Estate
Government
Non-for-profits
+ many more

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Whatever your goals, they bring the resources to help you move forward with confidence.

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Capabilities when you need them

• Financing
• Institutional Investing*
• Treasury Management
• Investment Banking & Securities*
• Global Services

*Through Wells Fargo Corporate and Investment Banking

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Our leadership reflects our commitment to our clients and the strength of our platform.

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Industry experience that makes a difference

#1 Syndicated Asset-Based Loans Lead Arranger¹
#2 Equipment Finance Lender (Bank-Affiliated)²
#3 U.S. Middle & Emerging Market Relationship Share³

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Your banking team brings partnership, perspective, and possibility with you at every turn.

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Partnership

Perspective

Possibility

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Contact us today to get started.

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Contact us today

Wells Fargo

1. Refinitiv U.S. 2025 ABL Bookrunner League Table and Wells Fargo

2. 2025 Monitor 100 survey

3. Coalition Greenwich Voice of Client – Market Tracking Program (Wells Fargo - Footprint) - $25M-$2B – Rolling 4 quarters (Q4 2024-Q3 2025)

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.

Global Payments and Liquidity 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.

Wells Fargo Corporate & Investment Banking (CIB) and Wells Fargo Securities (WFS) are the trade names used for the corporate banking, capital markets, and investment banking services of Wells Fargo & Company and its subsidiaries, including but not limited to Wells Fargo Securities, LLC, member of NYSE, FINRA, NFA, and SIPC, Wells Fargo Prime Services, LLC, member of FINRA, NFA and SIPC, and Wells Fargo Bank, N.A., member NFA and swap dealer registered with the CFTC and security-based swap dealer registered with the SEC, member FDIC. Wells Fargo Securities, LLC and Wells Fargo Prime Services, LLC, are distinct entities from affiliated banks and thrifts.

Investment and Insurance Products are: Not insured by the FDIC or any Federal Government Agency – Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate – Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

Wells Fargo & Company conducts business outside the U.S. through various companies, including duly authorized and regulated subsidiaries and affiliates in Asia, Canada, and Latin America. In Europe, banking services are provided through Wells Fargo Bank International (WFBI), directly regulated by the Central Bank of Ireland, and Wells Fargo Bank, N.A. London Branch, authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. All products and services may not be available in all countries. Each situation needs to be evaluated individually and is subject to local regulatory requirements.

©2026 Wells Fargo. Member FDIC.