Do you own real estate or equipment? Asset-based lending involves businesses securing a loan or line of credit using their assets, such as accounts receivable, inventory, or equipment, as collateral. Lenders evaluate the value of these assets and provide financing based on a percentage of their worth. ABL is advantageous because it offers businesses quick access to capital without the need for a strong credit history, making it suitable for companies facing cash flow challenges or growth opportunities. Additionally, it provides flexibility in utilizing funds for various purposes, such as working capital, expansion, or refinancing existing debt. Furthermore, as the value of a business's assets increases, so does its borrowing capacity, allowing for scalability and adaptability to changing financial needs.