Bibby Financial Services (BFS) provided a $10M asset-based lending (ABL) facility to an oil and gas industry client that manufactures and distributes products used for hydraulic fracturing and other well-related products. This accounts receivable and inventory based financing comes at a time when the client is experiencing rapid growth.

Prior to working with BFS, the business used to finance their operations through a credit line provided by their regional bank. However, the bank funding became insufficient once the company began to experience rapid growth. The business began looking for a financer that could support their growth and adapt as their funding requirements evolve. BFS was able to provide the flexibility the business was searching for through an ABL facility based on their accounts receivable and inventory as the borrowing base. This will allow the business to capitalize on growth opportunities and return any outstanding shareholder debt.

“Our in-depth knowledge of the challenges and opportunities of manufacturers played an important role in our ability to meet the client’s needs,” said Ian Watson, CEO BFS North America. “For this client, we took into account the business’s unique requirements and ambitions to develop the ABL solution for them. This is what sets BFS apart from traditional one-size-fits-all financing.”

Asset based lending can enable companies in many industries to expand, put a turnaround plan into effect, purchase new equipment, or fund acquisitions. By basing financing decisions on the value of a company’s assets and taking into consideration the business’ overall financials, BFS is able to tailor its financial solutions to match their clients’ specific needs.