Asset-based lending, or ABL, is a flexible line of credit backed by what your business owns. For us that starts with your unpaid invoices, and can include inventory and equipment too. Your borrowing room grows as those assets grow, which makes ABL a good fit for companies growing faster than a regular bank line can keep up with.
Yes. ABL is underwritten mainly around the quality of a company’s accounts receivable and other assets rather than years of financial history, which is why it can work for companies still in the startup stage, not only established businesses.
A bank decline usually reflects that bank’s specific underwriting rules, not the overall health of a business. ABL is evaluated differently, primarily on the strength of a company’s receivables, inventory, and equipment, which is why it’s often a fit for companies that don’t fit neatly inside a traditional bank credit box or have outgrown a bank line.