What is Asset-Based Lending?

Asset-based lending (ABL) is a financing option where businesses borrow money secured by their assets. Unlike traditional loans that rely heavily on credit scores and future projections, ABL focuses on the value of a company’s existing assets. These assets can include inventory, accounts receivable, equipment, real estate, and even intellectual property. The loan amount is typically a percentage of the appraised value of these assets, offering a significant advantage to businesses that might struggle to secure funding through traditional channels.

Understanding the Advantages of Asset-Based Lending

ABL offers several key advantages. Firstly, it provides access to