Asset Based Lending (ABL)
Asset Based Lending (ABL) is one method banks use to create credit facilities for many of their business customers. In ABL, a company’s assets are used as collateral to generate a “Borrowing Base Certificate” which can be drawn against for working capital. Almost any asset a customer has can be utilized as collateral for lending purposes.
For example: account receivable, inventory, fixed assets, real estate, cash or cash equivalents can be tracked and monitored by our application. The two primary assets used are Receivables and Inventory.