Can startups qualify for asset-based lending?

Yes, startups can indeed qualify for asset-based lending (ABL). While traditional lenders might be hesitant to extend credit to startups due to their limited credit history, ABL takes a different approach. Instead of solely relying on creditworthiness, ABL considers the value of your startup’s assets, such as inventory, accounts receivable, and equipment, as collateral.
Startups that possess valuable assets can leverage them to secure the necessary working capital for growth and operations. This makes ABL an attractive financing option for startups looking to bridge the funding gap, manage cash flow, and seize opportunities without being hindered by their fledgling credit history.