Private credit glossary · Data updated Oct 23, 2026
What is asset-based lending (ABL)?
Asset-based lending is debt secured by specific business assets — receivables, inventory, equipment, or other collateral — with the borrowing base recalculated as those assets change, letting companies borrow against what they own rather than only what they earn.
364
active ABL funds in this site's database
$5M–$50M
median confirmed check size, from 62 source-confirmed ranges
How it works
- The credit line floats with a borrowing base (e.g., 85% of eligible receivables).
- Field exams and collateral reporting replace some cash-flow covenants.
- Works for borrowers with lumpy earnings but strong assets.
When borrowers use it
- Working-capital-heavy businesses (distribution, manufacturing, staffing) with seasonal swings.
- Turnarounds or growth phases where cash-flow leverage is capped.
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