Asset-Based Lending

Asset-Based Lending (ABL) lets businesses access capital by using assets like receivables, inventory, or equipment as collateral. It offers flexible financing to support cash flow, growth, working capital, and other business needs. Always.bank provides customized ABL solutions tailored to your business.

We review your eligible assets to establish what's called a borrowing base. As those assets go up or down – like when receivables come in – your available credit adjusts with them. You just draw what you need, when you need it. It works a lot like a revolving line of credit but with more flexibility.

A wide mix. Companies growing quickly, navigating, seasonal swings, or needing more room than a traditional bank loan allows often turn to ABL. We commonly see Manufacturing, Distribution, Oilfield Services, Staffing, and similar industries use it to keep things moving smoothly.

Great question. Both give you working capital, but ABL is structured as a revolving line of credit secured by one or more asset types—not a sale of invoices.
- You keep ownership of your receivables
- You retain customer contact
- Reporting and compliance are more detailed
- Costs are generally lower for established companies with stronger financials

Your borrowing availability is based on advance rates applied to eligible assets. For example:
- 80–95% of eligible accounts receivable
- Up to 70% of Eligible Inventory
- Up to 70% of Eligible Equipment
Exact amounts vary based on your financials, asset quality, customer strength, and industry.

1. Predictable operating capital
2. Flexible funding that grows with your business
3. Lower cost than equity or many alternative lending options

A BBC is simply a report you submit, typically weekly, that shows updated receivables, inventory, and other collateral values, which determines the availability on your facility.

Reporting varies by business, but typically includes: AR aging, AP aging, Inventory reports, Financial statements, Bank statements, Tax filings.

Most ABL facilities come together in about 2 weeks, depending on how complex the collateral is, and whether a field exam is required.

Before closing (and occasionally after), we'll do a field exam to review your collateral, processes, and financial controls. It helps ensure everything is accurate and protects both you and us.

ABL is especially helpful when you:Need more availability than your bank can offerHave strong assets but inconsistent cash flowAre scaling fast and need flexible fundingWant fewer restrictive covenantsAre navigating a transition, acquisition, or restructuring

Absolutely. Many businesses start with factoring when they're early in growth, then transition into ABL as their reporting, stability, and capital needs expand. It's a natural progression and we support both.