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.
| Typical Amount | $1,000,000 - $100,000,000 |
| Cost | Prime + 1.5% to Prime + 5% |
| Funding Timeline | 10-20 business days |
| 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 amounts from $1MM – $100MM
Revolving credit lines available
70-90% advance on receivables
50-75% advance on inventory
Rates based on SOFR or Prime +1-5%
Suitable for US-based, B2B and B2C
Rates & Terms
| min Amount | $1,000,000 |
| max Amount | $100,000,000 |
| interest Rate | Prime + 1.5% to Prime + 5% |
| annual Cost Range | 8-13% |
| facility Fee | 0.5-1% annually |
| monthly Service Fee | $500-2,000 |
| closing Timeframe | 10-20 business days |
| ar Advance Rate | 70-90% of accounts receivable |
| inventory Advance Rate | 50-75% of inventory value |
Asset-Based Lending - Common Questions
Get answers to the most common questions about asset-based lending
Who Qualifies?
minimum Revenue:
minimum Time In Business:
minimum Credit Score:
required Assets: AR, Inventory, Equipment, or Real Estate
