Unitranche Loans provide streamlined capital by merging senior and subordinated debt into a single facility. This efficient financing structure simplifies documentation, reduces lender coordination, and accelerates funding—empowering businesses to pursue acquisitions, growth, or strategic initiatives with speed and flexibility.
What is a Unitranche Loan?
Unitranche loans consolidate multiple tiers of debt into one cohesive agreement. Instead of negotiating separately with senior and subordinated lenders, borrowers deal with a single loan facility under one set of terms and a blended interest rate. This not only saves time but also reduces complexity—making it an attractive solution for mid-market companies and time-sensitive transactions.
Unitranche financing offers a single, streamlined facility—simplifying documentation and reducing deal friction.
What types of assets qualify as collateral?
Accounts Receivable
Inventory
Machinery
Equipment
Commercial Real Estate
Debtor In Possession
When is a Unitranche Loan the Right Fit?
Unitranche loans are ideal for funding acquisitions or mergers. Their all-in-one structure accelerates the closing process and reduces the need to coordinate multiple lender approvals.
During events like management buyouts or family succession, a unitranche loan provides stable capital under one agreement—reducing complexity while ensuring continuity.
For companies scaling fast, unitranche loans offer immediate access to large capital amounts—streamlining the financing process so you can focus on executing growth strategies.
Unitranche financing allows you to consolidate existing debt under a single facility—reducing administrative costs and simplifying your repayment structure.
Unitranche loans are often best suited for mid-sized businesses seeking a customizable structure with less red tape than traditional multi-lender arrangements.
Frequently Asked Questions
Interest rates are influenced by several factors, including the quality and type of collateral, your company’s financial profile, and market conditions. ABL loans often carry more favorable rates than unsecured debt due to the secured nature of the financing.
LTV ratios vary based on asset type. Accounts receivable may be advanced up to 85%, inventory up to 50–65%, equipment around 75% of appraised value, and real estate up to 75% of market value.
If collateral value drops significantly, your borrowing base may be adjusted downward, which could require partial loan repayment or additional collateral to maintain the agreed terms.
Yes. ABL term loans can be structured alongside revolving credit lines, mezzanine financing, or even unitranche loans, depending on your capital structure and strategic goals.
ABL Secured Term Loans typically range from 3 to 7 years. Terms can vary based on collateral type, borrower needs, and the structure of the deal.
Startups may qualify if they have sufficient eligible assets and experienced leadership. Our underwriting process evaluates both asset strength and business viability.
Ongoing reporting is typically required, including monthly borrowing base certificates, collateral reports, and periodic field exams to ensure loan-to-value compliance and portfolio health.
ABL lending is ideal for asset-heavy industries such as manufacturing, distribution, healthcare, transportation, staffing, and others with substantial receivables or inventory on hand.
It can. ABL financing often replaces or restructures existing facilities. Coordination with your current lenders is critical to avoid conflicts or breaches of existing covenants.
Upfront costs may include legal documentation fees, due diligence, appraisals, and underwriting charges. These are discussed transparently during the proposal stage.