What is an asset-based lender (ABL)?
ABLs are financing companies that offer loans based mostly on the asset section of a balance sheet such as equipment, inventory and accounts receivables. If a business defaults on its loan, the ABL can seize the collateral and sell it to recover its losses. Some ABL’s only offer factoring services with either or both recourse and non-recourse invoice purchases. Factoring decisions are made quickly, while banks may take longer to approve a loan.
