What is Asset-Based Lending?
Asset-Based Lending (ABL) is a flexible credit line that lets you borrow against your company's assets like accounts receivable, inventory, equipment, and real estate. Instead of focusing heavily on credit history, ABL lenders evaluate the value of your collateral.
| Facility/Loan Size | Facility sizes from $250K – $25M |
| Cost of Capital | Cost of capital: Prime + 1–5%+ |
| Funding Timeline | Funding timeline: 6–8 weeks |
| Best For | Fast-growing companies with strong assets, Companies with inconsistent cash flow, Acquisitions and expansion, Debt restructuring, Managing cash flow during growth periods |
How It Works
Asset-Based Lending (ABL) allows businesses to leverage their accounts receivable, inventory, equipment, and commercial real estate as collateral to access flexible working capital. These lines of credit are ideal for companies which are going through seasons of rapid growth or experiencing temporary financial challenges. ABL lines are typically used for working capital, expansion, acquisitions, or debt restructuring.
Key Features & Benefits
Facility sizes from $250K – $25M
Revolving credit lines available
70-90% advance on receivables
50-75% advance on inventory
Cost of capital: Prime + 1–5%+
Funding timeline: 6–8 weeks
Typical industries: manufacturers, distributors, government contractors, services firms
Suitable for US-based, B2B companies
Asset-Based Lending - Common Questions
Get answers to the most common questions about asset-based lending
See It In Action
Real companies using Asset-Based Lending to solve their capital challenges
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Other Funding Solutions
Working Capital Loans & Lines of Credit
A working capital loan is short-term financing that helps businesses cover day-to-day operational expenses: payroll, inventory, accounts payable, rent, etc.
Learn more about Working Capital Loans & Lines of Credit →Invoice Financing
Invoice factoring (also called AR financing) is when you sell your unpaid B2B invoices to a factor for immediate cash. Instead of waiting 30-90 days for customers to pay, you get 75-95% of the invoice value within 24-48 hours. As customers pay, the borrowing automatically decreases—making it self-liquidating.
Learn more about Invoice Financing →Equipment Leasing
& Financing
Equipment leasing lets you acquire essential machinery, vehicles, technology without large upfront capital. Monthly payments spread the cost over 3-7 years.
Learn more about Equipment Leasing & Financing →