Turn your existing business assets into immediate working capital.
Asset Based Lending (ABL)
Asset Based Lending allows you to leverage accounts receivable, inventory, or other eligible assets to secure flexible funding that scales with your business.
Asset Secured Financing
Funding is secured by eligible business assets such as receivables or inventory.
Borrow Against Value
Access capital based on a percentage of your asset value.
Scalable Credit Access
As asset levels grow, your borrowing capacity can increase.
Asset Based Lending
Asset-based lending ties borrowing power to collateral value, with availability that can change as assets change
What You Need To Know
Financing tied to collateral value using a borrowing base (AR, inventory, equipment).
- Borrowing base: Availability is tied to eligible AR/inventory/equipment values.
- AR-driven funding: A distributor borrows against receivables to fund purchase orders.
- Inventory leverage: A wholesaler finances growth based on inventory strength.
- Dynamic limits: Borrowing capacity can rise or fall with collateral changes.
- Reporting readiness: Requires systems to report AR aging and collateral status.
What Can You Expect
Often unlocks more capital for asset-rich businesses than cash-flow-only options.
- Higher capacity: Asset-heavy businesses may qualify for larger facilities.
- Scaling growth: As receivables grow, funding availability can increase.
- B2B strength: Works well for companies with invoice-based revenue.
- Liquidity unlock: Converts stuck working capital into usable cash.
- Credit flexibility: Collateral quality can matter as much as credit in some cases.
Advantages & Disadvantages
Powerful for asset-heavy firms, but comes with controls and reporting complexity.
- Collateral-backed: Can be more accessible if assets are strong and verifiable.
- Growth support: Helps fund supply chain cycles and working capital expansion.
- Ongoing monitoring: Regular reporting and audits can be required.
- Operational burden: Teams may need to manage eligibility schedules and compliance.
- Control constraints: Lenders may place liens and impose collateral controls.
Your Minimum Requirements
Less about credit alone, more about collateral quality and reporting ability.
- Receivables quality: Clean AR aging and creditworthy customers matter.
- Inventory/equipment value: Collateral must be appraisable and saleable.
- Systems/process: Ability to produce frequent collateral reports is key.
- Lien position: Clear collateral rights and acceptable lien structure required.
- Management readiness: Strong operations reduce risk and improve terms.
What Do The Rates And Fees Look Like?
Typically a rate plus monitoring/audit/field exam fees (varies by lender).
- Rate component: Interest may be competitive depending on collateral quality.
- Field exams: Audits/field exams can be part of onboarding and ongoing checks.
- Monitoring fees: Monthly collateral monitoring fees are common.
- Event-driven costs: Appraisals and special audits may add expenses.
- Full-cost view: Show rate + typical fees to reflect true total cost.
EXAMPLE: Marcus has $500K in outstanding receivables and needs working capital
- Borrowing Base: $500,000 in receivables
- Advance Rate: 80 percent
- Available Capital: $400,000
- Interest Applies To: Funds drawn
- Payment Structure: Ongoing as receivables are collected
How It Works
Get approved based on your assets, unlock working capital, and repay as your receivables or inventory convert to cash.
Step 1: Collateral evaluation
Apply HERE. Review AR aging, inventory reports, and appraisals.
Step 2: Advance rates
Set eligibility rules and advance percentages by asset type.
Step 3: Facility setup
Establish reporting cadence and lender controls.
Step 4: Borrow within base
Draw funds up to the eligible borrowing base.
Step 5: Ongoing compliance
Maintain reporting and periodic audits.
- Flexible Repayment Terms
- 1000+ Funded Business Owners
- $175M in Lending Since 2018
Asset Based Lending Case Study
Real-world ABL scenarios can be explored via ByzLoan.
Mark J, Heavy Equipment Company
The Backstory
Mark needed to expand his fleet to take on a major high-rise construction contract in the city.
The Problem
After a previous business partnership failed, Mark’s credit score dropped to the low 500s. Traditional banks denied his application for a 35-ton crane, despite having the work lined up.
The Solution
A specialty lender approved financing by focusing on the value of the crane itself and the new contract’s cash flow, rather than just his personal credit history.
Quote
“I thought I was out of business before I even started again. They didn’t just look at the bad credit; they looked at my ability to work. Now, I’m ahead of schedule on the project.”
Fast and Easy
Application
Transparent
Terms
Expert
Consultation
Fast
Funding
Asset Based Lending Not The Right Fit For You?
No Problem! Check out our other loan options here!
Frequently Asked Questions
Get quick answers to the most common questions about funding, approvals, requirements, and timelines.
What is Asset Based Lending?
Asset Based Lending is financing secured by business assets such as accounts receivable or inventory, allowing you to borrow against their value.
What assets can be used as collateral?
Common eligible assets include accounts receivable, inventory, equipment, and in some cases purchase orders.
How is the loan amount determined?
The available funding is based on a percentage of the value of eligible assets, known as the advance rate.
How are repayments structured?
Repayment is typically tied to the collection of receivables or ongoing asset turnover, depending on the structure.
Is Asset Based Lending only for struggling businesses?
No. Many growing companies use ABL to unlock capital tied up in receivables or inventory to support expansion and cash flow.
What Our Clients Are Saying...
Merchant Cash Advance
We opted for a Cash Advance, and the funds were in our account the next morning. It was a lifesaver. Because the repayments fluctuate with our daily credit card sales, I didn't have to worry about a huge fixed bill during our post-holiday slow down. It kept our doors open when it mattered most.
