Podcast: How Asset-Based Lending Appeals to Commercial Clients Amid COVID-19

As the coronavirus pandemic and the policy response to it continues to affect businesses and commercial credit, many borrowers are converting revolving and secured cashflow credit facilities to asset-based lending facilities. On the ABA Banking Journal Podcast — sponsored by ProfitStars, a division of Jack Henry and Associates — Ed Gately of Mitsubishi UFJ Financial Group discusses this trend and what it means for borrowers and banks. Among other topics, Gately explores:

  • What businesses that find asset-based lending facilities attractive, including large and middle-market firms with large inventories such as retailers and food and beverage firms.
  • How the economic tail of COVID-19 is pushing more businesses to proactively move to ABL facilities to minimize the risk of breaching covenants in cashflow facilities.
  • How lenders are managing challenges of ABL facilities, such as on-site inventory appraisals, during the pandemic.
  • The kinds of conversations lenders should be having with their clients when considering a change to their loan facility.

If you can’t see the audio player above, click here to listen to this week’s episode.

This episode is sponsored by ProfitStars, a division of Jack Henry and Associates.

In this episode:

Ed Gately
Head of Asset-Based Finance
MUFG Americas

Evan Sparks
ABA Banking Journal