Type: Articles Published
WHAT IS ASSET-BASED LENDING?
Asset-based lending (ABL) is senior secured lending to finance the working capital lifecycle of a business. It differs from single-asset financing because the lenders are able to advance loans against the realisable value inherent in all asset classes. ABL can be a particularly supportive and flexible form of financing for companies undergoing periods of change, including acquisitions, turnarounds and re-financings. Although enforcement is rare, it does happen, and most asset-based lenders include a preliminary assessment of the likely enforcement route and outcome in their original credit decision.
Download the PDF to read the full article!