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Should you consider an Asset Based Loan for your business?

Should you consider an Asset Based Loan for your business

What is an Asset-Based Loan?

An asset-based loan (ABL) is a type of business financing that is secured by company assets. Most asset-based loans are structured to work as revolving lines of credit. This structuring allows a company to borrow from assets on an ongoing basis to cover expenses or investments as needed.

Who uses asset-based loans?

Asset-based loans are used by companies that need working capital to operate or grow. Often, companies that request an ABL have cash flow problems. However, many of these cash flow problems stem from rapid growth. The asset-based lending facility helps companies manage the rapid growth issues and positions the company for growth.

What businesses qualify for an asset-based loan?