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Asset-Based Lending & ABL Financing

Turn your accounts receivable, inventory and equipment into a working capital facility. Compare asset-based lending offers from multiple lenders.

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What Is It
What is asset-based lending?

Asset-based lending (ABL) is a revolving credit facility secured by a business's assets — typically accounts receivable, inventory and equipment. The borrowing base (what you can draw) is calculated from those assets, so a growing business grows its facility automatically.

ABL is used by manufacturers, distributors, wholesalers and service businesses with substantial balance-sheet assets. Facilities commonly run from $250,000 to $10 million and up. Through BidMyCapital you can compare ABL financing options from multiple lenders.

How It Works
How asset-based financing works
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Build the borrowing base

Receivables, inventory and equipment set your credit limit.

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Draw as assets grow

New inventory and invoices expand what you can borrow.

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Repay from collections

Cash from receivable collections repays the drawn balance.

Costs
Asset-based lending rates and fees

ABL is priced as floating-rate interest (typically prime + 2% to 5%) plus collateral monitoring and audit fees. Total effective costs often land below unsecured alternative lending for borrowers with solid assets.

Eligibility
Asset-based lending requirements

$250,000+ facility size

ABL economics favor meaningful loan sizes.

Collateral base

Receivables, inventory and equipment are appraised and monitored.

Established operations

Stable businesses with clean financial reporting.

Monitoring covenants

Lenders review collateral, usually monthly.

Related
Related funding guides
FAQ
Frequently asked questions
What is asset-based lending?

A revolving line of credit secured by your accounts receivable, inventory and equipment — your borrowing limit grows as your assets grow.

How is ABL different from invoice factoring?

ABL is a facility you draw from while you keep collecting your own receivables. Factoring sells invoices and the funder collects. ABL is usually cheaper and suits larger borrowers.

What assets can I borrow against?

Accounts receivable, inventory, equipment and sometimes real estate or IP, depending on the lender.

How much can I borrow with ABL?

Facilities typically start around $250,000 and can exceed $10 million, advancing 80% to 90% of receivables and 40% to 60% of inventory.

Is inventory financing the same as ABL?

Inventory financing is one component of asset-based lending — a loan or line secured specifically by inventory value.

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