Asset Based Lending
We provide revolving lines of credit secured by commercial trade accounts receivables and inventories.
Renasant Business Credit, the Asset-Based Lending division of Renasant Bank, primarily provides revolving lines of credit secured by commercial trade accounts receivables and inventories.
These credit facilities are most commonly used within the context of:
- Working capital financing
- Business mergers or acquisitions
- Dividend recapitalization
- Business renewals
- Financial restructuring
- Capital expenditures
Asset-Based Lending Features
Renasant Business Credit is focused on providing creative Asset-Based Lending solutions to commercial businesses with annual revenues of $15 million and greater, whose working capital financing needs are $2 million and more. We generally work with manufacturers, wholesale/distributors and B2B (business-to-business) service companies throughout most of the Southeastern United States.
Our Service Model
At Renasant Business Credit your Senior Relationship Manager handles all aspects of your asset-based loan, starting from origination and throughout the underwriting, credit approval and loan closing process. Most importantly, he or she will remain your primary relationship manager after the loan is closed. No more being handed off from a salesperson, to an underwriter and then finally getting introduced to your permanent relationship manager only after your loan is closed.
Our asset-based lending team consists of skilled professionals who collectively have nearly 100 years of experience and have been directly involved in over $1 billion of asset-based financing throughout their careers. We have the expertise to understand your unique business model and capital structure in order to customize the most appropriate asset-based credit facility for you.
Why asset-based lending?
- When historical cash flow and/or near-term business prospects do not allow your business to qualify for a traditional cash flow-based commercial loan, asset-based lending utilizes your business assets to generate borrowing base loan availability. Asset based lending is a widely accepted business finance tool. Commercial businesses of all sizes routinely utilize asset-based loans.
- Asset-based loans have fewer financial covenants than traditional cash flow-based commercial loans.
- No more having to comply with several different financial covenants each month, such as a fixed-charge coverage ratio, maximum senior debt to net worth, minimum net worth and maximum capital expenditures, just to name a few.
Why Renasant Business Credit?
- At Renasant Business Credit, we have the traditional asset-based lending fortitude, which means we focus on the overall liquidity of your business as represented by your net excess borrowing base availability. Our goal is to maximize the loan availability from your receivables, inventory and other fixed assets to provide you the cash you need to maximize your business opportunities.
- Your loan request will be handled by a seasoned, experienced lender, and you will have access to our key decision makers. We pride ourselves on being decisive and responsive. You can count on us to propose only what we can deliver and deliver on what we propose.
To learn more, contact:
Michael P. Knuckles, Executive Vice President
Asset-Based Lending Division Manager