Asset Based Lending
Frequently called “ABL”, asset based lending is a type of loan that is secured by various types of collateral.
Most commonly used by businesses, asset-based loans are typically secured by accounts receivable, inventory or equipment. Whereas banks typically approve loans based on a proven record of predictable cash flow, an asset-based lender instead uses the value of the pledged assets for underwriting purposes. This offers businesses access to capital without relying solely on their creditworthiness. ABL is often used by companies needing working capital for growth, seasonal fluctuations, or operational expenses. It provides flexible funding, and because it's asset-backed, it may be an option for businesses that don’t qualify for traditional loans.
Asset Based Lending Guidelines:
Minimum loan/line amount - $500k
Loan to Asset Value
Accounts Receivable – up to 80%
Inventory – up to 60%
Equipment – up to 70%
Industries Served:
Manufacturing
Wholesale
Construction
Oil & Gas
Healthcare
Service Providers
Transportation
Staffing
Telecom
Utility
Energy
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