What is Asset Based Lending (ABL)?
Asset Based Lending (ABL finance) is a credit facility based on primarily leveraging a company’s assets as collateral. An Asset Based Lender is giving you an Asset Based Loan or ABL finance typically tied to inventory, accounts receivable, intellectual property and your machinery & equipment.
RELATED TERMS
- Factoring
Invoice Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to…
- Factoring Advance
A cash advance to a Client (usually by wire transfer or ACH) for 80-90% of the value of the purchased and verified Invoice. Our goal at ECapital is to verify and fund the same day as invoice receipt (if before…
- Current Assets
Current Assets represent the value of all assets within a business that is Cash or expected to be converted into cash within one year and are found in the Asset Section of a Balance Sheet.