Home > Financial Services > Financing > Asset-Based Lending (ABL)

Asset-Based Lending (ABL)

About Asset-Based Lending

Asset-based lending (ABL) is a method of financing that uses as collateral a company's liquid assets, such as aggregate movable property, inventory collateral and receivables.

1.Benefits

  • More diverse funding methods: expeditious fund-raising
  • Provides a way of shifting the balance of debt
  • Sale of surplus inventories (by raising the quality of its existing inventories, a company can aim for higher profitability)
  • Strengthens and enhances internal control systems

2.Scheme

3.Procedures

  1. Determine collateral value of customer's inventories (on-site inspection, etc.): Valuation
  2. Review financing based on valuation results
  3. Provide financing, transfer collateral
  4. Regularly provide information on movable assets

DBJ's Services: From Financing Corporate Revitalization to Providing Growth Capital

As a frontrunner in corporate revitalization financing, DBJ developed an asset-based lending (ABL) scheme to support companies, while at the same time securing their debts. Going forward, we plan to apply this expertise to develop ABL schemes that provide companies with growth capital.

1. Valuation of principal collateral

Use inventories as principal collateral for companies that are revitalizing their operations or experiencing difficult business conditions

2. Strong track record

3. Collaboration with Gordon Brothers of the United States

In July 2006, we collaborated with Gordon Brothers of the United States to jointly establish Gordon Brothers Japan Co., Ltd., the first company in Japan to concentrate fully on inventory valuation and disposal.

Case Study

Plant Co., Ltd

DBJ helped Plant raise the stable, long-term capital it needed to fulfill its fiscal strategy for sustained future growth.

Nakamura Jozo Co., Ltd.

In Nakamura Jozo's case, the Bank provided DIP financing using the company's inventory of unpasteurized soy sauce as collateral.

UP

Page Up