What happens if the value of my assets fluctuates?

Fluctuations in your assets’ value can impact an asset-based lending (ABL) arrangement. The value of your collateral assets serves as the basis for determining the amount of funding you can access. If the value of these assets experiences significant changes, it could affect the amount of available credit.
Lenders often build mechanisms to manage such fluctuations. Periodic assessments of the collateral’s value may be conducted to ensure it aligns with the terms of the loan. If the value declines, the lender might require additional collateral or adjust the terms of the lending agreement.
Conversely, if the value of your assets appreciates, you might have the opportunity to access more credit or negotiate better terms.