$250K – $50M
Loan Amount
From 7%
Interest Rate
14 – 30 days
Time to Fund
Revolving
Structure
Where ABL wins against a conventional bank line.
The standard advance rates are 70 to 90 percent against eligible receivables and 50 to 70 percent against eligible inventory. "Eligible" does a lot of work in that sentence. Receivables over 90 days out, concentrated in a single customer, or owed by weak credits get excluded. The same goes for obsolete or slow-moving inventory. The remaining collateral is what the lender will lend against, and the facility resizes automatically as your book moves.
That mechanism is exactly why ABL works for high-growth operators scaling faster than their P&L can prove, for seasonal businesses whose cash cycles embarrass a traditional lender, and for companies coming out of a rough year where a bank would have pulled the line. The trade-off is reporting. Most ABL facilities require a monthly borrowing-base certificate; the larger or riskier ones ask for weekly. If your accounting function can deliver clean numbers on schedule, ABL usually gives you a larger facility and more flexibility than a comparable bank line. If it cannot, fix that first.
Eligibility what we typically look for
- Eligible collateral with clean title and decent quality
- Annual revenue of $1M or more
- Organized asset ledger with accurate aging
- Capacity to produce monthly (sometimes weekly) borrowing-base reports
Why founders pick this
Key benefits
- Higher limits than unsecured credit lines at similar revenue
- Availability scales up as receivables and inventory grow
- Tolerates uneven quarters and seasonal swings
- More flexible underwriting than bank cash-flow models
Things people ask before applying.
Receivables, inventory, equipment, machinery, and occasionally owner-occupied real estate. Receivables and fast-moving inventory carry the highest advance rates because they convert to cash quickly in a workout. Specialty equipment and slow inventory advance at steep discounts, or not at all.
A traditional bank line underwrites on cash flow and credit history. If your P&L wobbles, the bank pulls the line. ABL underwrites on the collateral itself, so the facility responds to your balance sheet rather than last quarter's income statement. For asset-rich operators, that translates to more availability and more patience during rough patches.
Monthly borrowing-base certificates are standard. Larger facilities or riskier credits can push that to weekly. Expect to send receivables aging, inventory reports, and payable schedules on a fixed calendar. This is the price of admission for the product. If your controller cannot hit the schedule, ABL is not the right fit yet.
Yes, and it is one of the few products that does. When a bank has pulled a line because the P&L deteriorated, ABL can often refinance it because the collateral is still there. It buys the operator time to fix the business. Pricing reflects the risk, but the facility keeps payroll running.
Often stacked with this one.
Accounts Receivable Financing
Turn unpaid B2B invoices into cash in your account tomorrow. Stop underwriting your customers' slow pay cycles with your own working capital.
Read the brief →Equipment Financing
Buy the machinery, trucks, or tools you need without emptying the operating account. The equipment secures the loan, which is why this product is one of the easier ones to get approved for.
Read the brief →Business Line of Credit
A revolving credit facility sized to your business. Draw when you need capital, repay on your schedule, and pay interest only on the portion you carry.
Read the brief →Ready to apply for asset based lending?
One application puts every product on the table your underwriter handles the rest.
Soft credit pull. No hard inquiry unless you accept terms.