Overview
Your balance sheet as the credit story
Asset based lending (ABL) blends elements of a line of credit and factoring, secured by a broader base of collateral — receivables, inventory, equipment, and sometimes real estate — rather than any single asset type. Advance rates are set against each collateral category, and the facility grows or shrinks as your asset base does.
It's a natural fit for capital-intensive or asset-rich businesses whose cash flow alone wouldn't support a traditional loan — including companies mid-turnaround, in rapid growth, or looking to get out from under restrictive bank covenants.
Ideal for
- Capital-intensive businesses with strong inventory or AR
- Turnaround situations with thin or inconsistent cash flow
- Rapid-growth companies outpacing their existing credit line
- Refinancing out of restrictive bank covenants
- Businesses with strong assets but a story that's hard for a bank to underwrite
At a Glance
Typical deal parameters
General ranges — advance rates vary meaningfully by collateral type.
A clean cap table and clear ownership picture speed up ABL underwriting significantly.
Why LendHaven
We know how to tell your balance sheet's story
ABL underwriting is more collateral audit than cash-flow analysis. We help you package inventory, AR, and equipment data the way an ABL lender needs to see it — and match you to lenders whose advance rates fit your asset mix.