Working Capital Loan — First Horizon National Corporation

A Working Capital Loan from First Horizon National Corporation is designed to help businesses maintain smooth operations, manage seasonal fluctuations, and capitalize on growth opportunities without disrupting long-term investment plans. This financing solution delivers flexible, short- to medium-term liquidity that can be used to cover payroll, inventory purchases, supplier payments, and other day-to-day operating expenses. With a focus on responsiveness and relationship-driven service, the product supports companies across industries that need a dependable source of operational funding.

Key Features

• Purpose-built liquidity: Funds are intended for routine operating needs rather than capital projects, enabling businesses to maintain steady operations during cyclical or unexpected cash flow gaps.
• Flexible structures: Options include term loans, revolving lines of credit, and asset-based advances, allowing customization to match cash flow patterns and seasonal demands.
• Relationship banking approach: Credit decisions and loan structuring are tailored through consultation with experienced bankers who understand the nuances of each business sector.
• Competitive pricing: Pricing is positioned to reflect the borrower’s credit profile and the structure of the facility, with potential for revisions as the relationship evolves.
• Operational efficiency: Streamlined underwriting and documentation processes are used for eligible borrowers to reduce time-to-funding and administrative burden.

Benefits for Your Business

• Maintained cash flow: Smoothly bridge periods of delayed receivables or unexpected outlays without disrupting supplier relationships or payroll commitments.
• Scalability: Facilities can be sized to fit current needs and adjusted as the business grows, supporting both short-term bursts and ongoing working capital requirements.
• Operational agility: Quick access to capital allows management to seize time-sensitive opportunities, such as bulk inventory discounts or short-term vendor negotiations.
• Reduced financing cost: Compared to repeated short-term borrowing or high-interest alternative finance sources, a structured working capital solution can be more cost-effective over time.
• Financial stability: By separating working capital needs from long-term investments, companies preserve capital for strategic projects and capital expenditures.

Typical Uses

Businesses commonly use working capital loans for:

• Financing seasonal inventory buildups prior to peak selling periods.
• Bridging receivables to pay suppliers and payroll on time.
• Managing temporary dips in revenue during slow cycles or ramp-up stages.
• Supporting short-term marketing campaigns or promotions that require upfront expense.
• Providing liquidity for restructuring or transition periods, including opening new locations or adjusting supply chains.

Eligibility and Underwriting

Eligibility is based on a combination of factors including business history, cash flow performance, collateral availability, and industry considerations. Underwriting typically evaluates:

• Demonstrated ability to generate consistent cash flows to service the loan.
• Quality and stability of accounts receivable and inventory if asset-based structures are used.
• Management experience and track record in the business sector.
• Overall creditworthiness of the business and, where applicable, owners or guarantors.

Collateral requirements vary depending on the structure and risk profile. For asset-based lending, receivables and inventory often serve as primary collateral. For relationship-based facilities, lending decisions may rely more on cash flow and borrower performance.

Repayment Options and Terms

Working capital loans can be structured with multiple repayment approaches:

• Revolving lines of credit: Borrow, repay, and redraw as needed within an agreed limit and term, making this ideal for fluctuating cash needs.
• Term loans: Fixed or variable amortization schedules for predictable repayment over a set period.
• Asset-based borrowing: Advances based on a percentage of eligible receivables and inventory, with borrowing capacity fluctuating as the asset base changes.

Repayment frequencies, covenants, and reporting requirements are tailored to balance lender oversight with operational flexibility. Early payoff options and covenant relief provisions may be negotiated as part of the overall banking relationship.

Application Process

1. Initial consultation: Discuss business needs, cash flow patterns, and preferred structure with a banker to identify the right product configuration.
2. Documentation submission: Provide financial statements, accounts receivable and inventory schedules (if applicable), tax returns, and other materials required for underwriting.
3. Underwriting and due diligence: The bank reviews financials, verifies collateral, and assesses risk to determine terms and pricing.
4. Approval and documentation: Upon approval, loan agreements and security documents are prepared and executed.
5. Funding and ongoing management: Funds are made available and the facility is monitored with routine reporting and periodic reviews.

Practical Tips for Applicants

• Maintain clear, up-to-date financial records to speed up the underwriting process.
• Prepare accounts receivable and inventory schedules that show aging and turnover patterns.
• Be transparent about seasonal trends and any one-time events that affect cash flow.
• Consider aligning the term and structure of the loan with the predictable inflows that will repay it.
• Discuss covenant expectations up front and negotiate terms that support operational flexibility.

Why Choose a Working Capital Loan from First Horizon National Corporation?

A working capital solution from First Horizon National Corporation combines industry expertise, flexible structuring, and a commitment to long-term client partnerships. Whether a business needs short-term bridging, seasonal financing, or a more sophisticated asset-based facility, the product is intended to be a dependable tool for preserving operations, enabling growth, and improving financial resilience. Through individualized assessments and a consultative approach, the bank aims to align funding solutions with the realities of each client’s cash flow cycle and strategic objectives.

For businesses seeking practical, relationship-driven financing to manage working capital demands, this loan product offers a balanced combination of flexibility, oversight, and access to operational liquidity that can make day-to-day management and longer-term planning more secure and predictable.

Address Bank: Memphis, Tennessee, U.S.
Bank: First Horizon National Corporation
Headquarters: Memphis
Products: Loans & Credit
Type: Working Capital Loan