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ASSET-BASED LENDING

Revolving Credit Backed by Your Business Assets

Access flexible revolving facilities secured by accounts receivable, inventory, equipment, and real estate — designed for businesses that need more than traditional bank lines.

Asset-based lending
WHAT IS ABL

Capital Secured by What You Own

Asset-based lending (ABL) is a revolving credit facility where your borrowing capacity grows with your asset base. Unlike traditional bank lines based on cash flow covenants, ABL focuses on the real collateral value of your accounts receivable, inventory, equipment, and real estate. Ideal for high-growth, seasonal, or transitioning businesses.

Alliance connects you with ABL specialists from our network of 70+ lenders. We handle the asset evaluation, covenant structure, and placement — you get flexible capital that evolves with your business, not restrictive lending that holds you back.

Common Use Cases for ABL

High-Growth Companies

Outgrowing traditional bank lines? ABL grows with your sales and inventory, unlocking capital banks won't approve.

Seasonal Businesses

Fluctuating inventory needs? Draw when you need inventory, repay when seasonal sales peak — zero unused line fees.

M&A and Turnarounds

Companies in transition need flexible terms that evolve as you integrate or restructure. ABL adapts with you.

Strong Assets, Lumpy Cash

Solid inventory and receivables but irregular cash flow? ABL unlocks capital from your balance sheet, not your P&L.

Supplement Senior Credit

Have a bank line but need more? ABL stacks on top of existing debt for additional working capital flexibility.

Cross-Border Operations

International expansion or cross-border subsidiaries? ABL structures work across currencies and jurisdictions with flexibility.

Why Choose Alliance for ABL

Capacity Grows With You

As inventory, receivables, and equipment increase, so does your available credit — no need to renegotiate.

More Flexible Covenants

ABL covenants focus on collateral ratios, not EBITDA or debt-service metrics — less restrictive than traditional lending.

Multi-Asset Access

Unlock capital from A/R, inventory, equipment, and real estate simultaneously in a single facility — maximum leverage.

Ideal Bridge Capital

Perfect for growth, M&A, or restructuring phases when traditional bank metrics are in flux. Stability through transition.

HOW IT WORKS

Three Steps to Asset-Based Lending

1

Asset Analysis

We analyze your asset base—accounts receivable, inventory, equipment, real estate—to determine facility size and structure.

2

Lender Match

We submit your ABL profile to ABL specialists from our 70+ lender network. Receive multiple offers with competing rates.

3

Facility Established

Choose your lender, sign documents, and draw on the revolving facility. Repay and redraw as assets shift throughout the year.

Asset-Based Lending — Frequently Asked Questions

Common questions about ABL financing for businesses.

What is asset-based lending? +
Asset-based lending (ABL) is secured financing where the loan amount is determined by the value of your business assets — typically accounts receivable, inventory, and equipment. A revolving ABL facility lets you borrow against eligible assets and repay as those assets are collected. As your asset base grows, your borrowing capacity grows with it.
What assets can be used as collateral? +
Eligible assets typically include:
  • Accounts receivable — advanced at 80–90% of eligible A/R
  • Inventory — advanced at 40–60% of eligible value
  • Equipment & machinery — advanced at orderly liquidation value (50–80% of NBV)
  • Commercial real estate — for larger facilities
How is ABL different from a bank line of credit? +
A bank line is based on credit history, cash flow, and financial ratios. ABL is based on the value of specific assets. This allows businesses with strong assets but inconsistent cash flow or credit challenges to access significantly more capital — and scales with your business rather than being capped at a fixed amount.
What is a borrowing base? +
The borrowing base is the maximum you can draw at any given time, calculated as a formula against your eligible assets. Example: 85% of eligible A/R ($5M × 85% = $4.25M) + 50% of eligible inventory ($2M × 50% = $1M) = $5.25M available. As receivables are collected and new invoices issued, the borrowing base updates accordingly.
How large can an ABL facility be ? +
ABL facilities typically range from $500,000 to $50,000,000+, depending on eligible collateral. Most Alliance clients have facilities in the $1M–$15M range. Unlike a fixed loan, ABL is revolving — you borrow, repay, and borrow again as your assets cycle.
What industries use ABL? +
Most common in: manufacturing, distribution, wholesale, staffing, transportation, and retail. Also widely used by businesses in turnaround situations, seasonal businesses with inventory swings, and companies that have outgrown their bank facility.
What reporting is required? +
ABL lenders require regular borrowing base certificates — typically monthly, sometimes weekly. These detail your eligible A/R and inventory to support the outstanding balance. Periodic field audits verify your assets on-site. This reporting is more intensive than a traditional line but unlocks significantly more capital.
Can a business in financial difficulty use ABL? +
Yes. ABL is often used in turnaround and restructuring situations. Because it is secured by assets rather than cash flow or credit rating, ABL can provide liquidity to businesses with declining profitability, recent losses, or covenant violations. Alliance has placed ABL facilities for companies in insolvency protection, creditor forbearance, and post-insolvency restructuring.
What does ABL cost? +
Typical ABL pricing:
  • Revolving rate: prime + 1–3% on drawn balances
  • Unused line fee: 0.25–0.50% per annum on undrawn amounts
  • Field audit fees: $2,000–$5,000 per audit (1–2× per year)
All-in cost is typically lower than unsecured working capital alternatives. Alliance provides full fee disclosure before commitment.

Ready for Asset-Based Lending?

Explore how ABL can unlock capital from your balance sheet while keeping operations flexible.

Explore ABL for Your Business