Asset-Based Lending (ABL)

Asset-based lending (ABL) allows businesses to borrow against assets such as inventory, receivables, or equipment. This financing option provides flexibility and can be an attractive alternative to traditional loans for companies with strong asset bases. ABL is particularly useful for managing liquidity, funding growth, or overcoming short-term cash flow issues.

Key Takeaways

  • Loans secured by business assets like inventory or receivables.
  • Offers flexible financing for companies with strong asset bases.
  • Useful for managing liquidity or cash flow challenges.
  • Alternative to traditional loans.

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