Asset Based Lending (ABL)

Asset-based finance is a specialized method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as collateral. It is essentially any loan to a company secured by one of the company's assets.

 

ABL is often used to pay for expenses when there are gaps in a company's cash flows, but can also be used for startup company financing, refinancing existing loans, financing growth.

ABL is a good solution for:

  • Businesses trading with other businesses

  • Companies with at least two years in business

  • Companies that is unable to obtain traditional bank financing

  • Fast growing businesses where a bank loan is not the best solution

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