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