Asset-Based Lending

Overview of the Asset-Based Lending program:

CIBC Asset-Based Lending has built a strong reputation as a leader in Canada because of our ability to combine a full range of banking solutions with proven asset-based lending capability, customized for companies in the Canadian marketplace - just like yours. Asset-based lending can offer greater credit availability and flexibility for your business through customized loan arrangements secured by accounts receivable, inventory and fixed assets. CIBC Asset-Based Lending is committed to providing your company with the best overall financing solution, including limited or no financial covenants and the ability to commit to, fully underwrite and syndicate large transactions.

Benefits of the Asset-Based Lending program:

• Key Benefits
• Improved liquidity
• Higher advance rates for A/R and inventory than traditional cash flow financing
• Offers the ability to smooth out gaps in your cash flow during business cycles and seasonal peaks
• Benefits companies experiencing high growth, seasonal and/ or cyclical swings, high volume/ lower margins or a temporary decline in operating performance
• Increased Flexibility
• Minimal financial covenants (typically, no leverage covenants)
• Greater ability to fund distributions or pursue acquisitions (based on liquidity)
• Support during good times and bad for industries that are less attractive for traditional financing
• Attractive Terms and Pricing
• Typically, longer term than other forms of traditional financing
• Competitive pricing with other forms of traditional pricing

Eligibility criteria of the Asset-Based Lending program:

• Asset-Based Lending could be right for your company if you:
• Are a medium to large-sized businessAre involved in a seasonal or cyclical industryTypically have lower operating marginsRequire capital to finance sales growth, acquisition financing, restructuring, or turnaround financingAre looking to raise capital in a less costly way than bringing in an equity partnerWant to take advantage of growth opportunities