by an intermediary
from Vanderbilt University
in Dallas, TX, USA
2h ago
Equipment-based financing
Can anyone recommend good ABL financing sources? A buyside client of mine is looking at a somewhat distressed manufacturing facility with $5.5mm in equipment (per a recent appraisal). Thank you!
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by an intermediary
5m ago
from Brigham Young University
in Salt Lake City, UT, USA
Brad, good question — and with a distressed manufacturer, the appraisal is where this starts. What we see is ABL lenders underwrite the equipment's liquidation value, not the $5.5mm headline number, so age, condition and how specialized the machines are will move the answer a lot. Before you shop it, get the appraisal broken out by asset, and check for existing liens and UCC filings — a lender will find them anyway, and it is faster to clear them up front. If the equipment is specialized, a sale-leaseback on part of it can sometimes sit alongside an ABL line, but only if the ABL lender agrees to the carve-out first.