Asset-based Lending (ABL)
Asset-based lending is a financing method where a lender provides credit to a borrower based on the value of the borrower’s assets. The lender assesses the value of the borrower’s assets, such as inventory, accounts receivable, or equipment. A loan is then extended, typically secured by these assets.
ABL is often used by businesses that require short-term financing to support operations, working capital, or growth initiatives. Asset-based lending can be a flexible and accessible financing option for businesses with significant asset value but limited access to traditional forms of credit.