When Asset-Based Lending Is Appealing

1. You Have Valuable Collateral

Assets like accounts receivable, inventory, equipment, or real estate can be used to secure financing. Ideal if your business is asset-rich but cash-poor.

2. Traditional Loans Are Hard to Get

Poor credit, limited operating history, or a temporary dip in profitability may disqualify you from conventional bank loans. ABL lenders focus more on asset value than credit score.

3. You Need Working Capital—Fast

ABL can provide quick liquidity for payroll, purchasing inventory, or bridging gaps during seasonal slowdowns. Often used during growth, turnaround, or restructuring phases.

4. Your Revenue Is Tied Up in Receivables

If you’re waiting 30, 60, or 90+ days for customer payments, ABL can unlock that trapped cash. Especially valuable in B2B industries with large invoices.

5. You Want a Flexible Credit Line

ABL often works as a revolving line of credit, which grows or shrinks with your asset base.

More responsive than fixed-term loans.

Common Use Cases:

• Wholesalers, manufacturers, and distributors

• Real estate investors with equity in properties

• Companies in turnaround or distressed situations

• M&A bridge financing