Asset-Based Loans

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Asset-based lending (ABL) is a form of financing that allows a business to secure funding by leveraging its assets as collateral.

Improved Liquidity: Helps businesses maintain steady access to working capital, especially during periods of financial strain.
Diverse Collateral Choices: Businesses can use a range of assets—like accounts receivable, inventory, equipment, or intellectual property—as loan security.
Reduced Financing Costs: Generally provides lower interest rates than unsecured loans since the collateral lowers the lender’s risk.
Support for Struggling Businesses: A viable option for companies undergoing financial restructuring or those that don’t meet traditional lending criteria.

Managing Working Capital: To bridge cash flow gaps caused by seasonal fluctuations, delayed customer payments, or other short-term liquidity pressures. It helps businesses meet day-to-day operating expenses, including payroll and vendor obligations.
Business Growth and Expansion: To support growth initiatives such as entering new markets, launching new product lines, or expanding operations. This financing type provides necessary funds without requiring equity dilution.
Funding Mergers and Acquisitions: Strategic tool to finance acquisitions, giving businesses access to capital while retaining ownership and control.
Turnaround and Restructuring Support: Businesses facing financial setbacks or going through restructuring often rely on ABL when traditional financing sources are out of reach.
Inventory Purchases: Manufacturers and retailers utilize ABL to finance inventory purchases—particularly useful during high-demand seasons or periods of growth.