Asset-Based Lending: Unlocking the Value of Your Business Assets

Asset-based lending (ABL) is a financing strategy where loans are secured by a company's assets — including accounts receivable, inventory, equipment, and real estate. For businesses with significant assets but inconsistent cash flow, ABL can provide access to capital that traditional cash-flow-based lending cannot.

The borrowing base in an ABL facility is determined by the value of eligible collateral. Typical advance rates are 80-85% for eligible receivables, 50-65% for eligible inventory, and 70-80% for appraised equipment value. The total borrowing base determines how much a company can draw at any given time.

ABL offers several advantages over traditional lending. First, it provides more capital — because the loan is secured by assets, lenders can offer higher leverage ratios. Second, it is more flexible — as your assets grow, your borrowing capacity grows automatically. Third, it is more accessible — companies with inconsistent profitability or limited operating history can still qualify based on asset quality.

IntelliCapital's platform includes 35+ specialized asset-based lenders who can evaluate your collateral and provide competitive proposals within days. Our AI analyzes your asset composition to identify the lenders most likely to offer the highest advance rates and most favorable terms.