Asset-Based Finance

Asset-based lending (ABL) has become increasingly popular in recent years. Secured by borrower assets, these loans offer ready availability of cash, low interest rates, liquidity and flexible repayment plans. Since loan qualification is based on the borrower’s asset value, companies with unfavourable financials are still eligible.

Our pre-eminent Financial Services group has expertise in negotiating, structuring and documenting a wide variety of loan, credit and other financial transactions including those involving assets located in foreign markets or subject to the laws of multiple jurisdictions. As industry leaders, we have developed several innovative financing and security structures used in Canada.

Because of our finance expertise and ability to advise on diverse financing instruments and loan arrangements, including cross-border, bilateral and syndicate loans, both borrowers and lenders come to Blakes for asset-based finance advice. We counsel clients throughout the life cycle of their lending relationships, conducting due diligence and counselling clients on loan priorities and lien perfection. With expertise in a wide range of industries, we have negotiated asset-based financing secured by virtually every class of property so that we are familiar with the specific issues of each asset class. With Canada’s largest and most highly regarded aviation law practice, we are more experienced than any other firm in handling aviation industry finance transactions.

Blakes lawyers often serve as local counsel for U.S. and multinational lenders and borrowers on transactions with Canadian components and work collaboratively with U.S. law firms on client deals in the U.S. Our Montréal-based lawyers counsel clients on Quebec-specific issues that arise in the content of lending and borrowing. Drawing on the expertise of our Financial Services Regulatory and Tax groups, we also advise non-Canadian lender clients on compliance with Canada’s regulatory, tax and process requirements.

Leveraging the expertise of our Employment & Labour Law, Commercial Real Estate, Pensions, Benefits & Executive Compensation, Intellectual Property, Restructuring & Insolvency, Tax and Environmental practices, we add value for clients by evaluating the impact of union rights, pension plans, environmental issues, bankruptcy and intellectual property on asset values and the ability of borrowers to repay their loans. We also advise on loan collection and troubled loan workouts.

When disputes require litigation, our lawyers represent clients at all levels of courts in Canada. We also represent clients in liquidations, bankruptcies and in connection with debtor-in-possession financing as well as in the purchase of assets from bankrupt entities.