How is ABL different from factoring?

ABL is a revolving line you draw against; factoring is the outright sale of specific invoices. ABL usually has lower cost of capital but stricter eligibility and monthly reporting requirements.

What size company is a fit for ABL?

ABL usually starts to make sense around $10M in revenue and $1M+ in eligible receivables, though asset-heavy manufacturers can qualify earlier. Below that, factoring is usually the cleaner fit.

What are typical advance rates on collateral?

Roughly 80–90% on eligible AR, 40–60% on eligible inventory, and 60–80% on appraised equipment orderly liquidation value. Ineligible AR (concentration, disputes, foreign) gets carved out of the base.

What reporting will I be required to send?

Expect monthly borrowing base certificates, AR/AP agings, inventory reports, and financial statements. Field exams and appraisals happen periodically. Good bookkeeping is not optional in an ABL relationship.

Can ABL refinance an existing bank line?

Yes — this is one of the most common uses. When a bank line has been capped or called, an ABL structure can usually take out the existing debt and provide meaningfully more availability against the same collateral.

Program

Asset-Based Lending (ABL)

Borrow against what you already own.

Revolving lines secured by receivables, inventory, and equipment.

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Best for

Established manufacturers with meaningful receivables, inventory, and/or equipment who want a flexible revolving line.

How it works

1The lender evaluates the value of your eligible collateral (AR, inventory, equipment).
2A borrowing base formula determines your available line.
3You draw and repay as needed, with monthly reporting.

Benefits

Line scales with your business
Often more flexible than traditional bank debt
Rates typically lower than factoring for the right profile

Asset-Based Lending (ABL) — FAQs

Related programs

Invoice Factoring

Turn unpaid invoices into cash today—stop waiting on net-60 or net-90.

Equipment Financing

Finance new or used machinery, CNC, robotics, and production lines.

Purchase Order Financing

Get the capital to fulfill large customer orders without straining cash flow.

Working Capital

Short-term capital to bridge payroll, materials, and growth spikes.

SBA & Term Loans

Longer-term, lower-cost capital for growth, real estate, or acquisitions.

Asset-Based Lending (ABL) by industry

See how asset-based lending (abl) works inside a specific manufacturing niche.

Asset-Based Lending (ABL) by city

View all Asset-Based Lending (ABL) cities →

Local placement for asset-based lending (abl) in every US manufacturing metro we serve.

Gulf Coast

Asset-Based Lending (ABL) in Houston, TX Asset-Based Lending (ABL) in Mobile, AL Asset-Based Lending (ABL) in Baton Rouge, LA Asset-Based Lending (ABL) in Brownsville, TX Asset-Based Lending (ABL) in Victoria, TX Asset-Based Lending (ABL) in Monroe, LA Asset-Based Lending (ABL) in Alexandria, LA Asset-Based Lending (ABL) in Lake Charles, LA Asset-Based Lending (ABL) in Houma, LA Asset-Based Lending (ABL) in Slidell, LA

West Coast

Midwest

Great Lakes

South Central

Southeast

Upper Midwest

Mid-Atlantic

Southwest

Pacific Northwest

Mountain West

Northeast

West

South

Great Plains

Mountain

Asset-Based Lending (ABL) in Cheyenne, WY Asset-Based Lending (ABL) in Ogden, UT Asset-Based Lending (ABL) in Provo, UT Asset-Based Lending (ABL) in St. George, UT Asset-Based Lending (ABL) in Grand Junction, CO Asset-Based Lending (ABL) in Fort Collins, CO Asset-Based Lending (ABL) in Bozeman, MT Asset-Based Lending (ABL) in Missoula, MT Asset-Based Lending (ABL) in Idaho Falls, ID Asset-Based Lending (ABL) in Pocatello, ID Asset-Based Lending (ABL) in Casper, WY

Ready to keep production moving?

Start with a quick app or a phone call. We'll tell you exactly what the right program requires—at no charge.

Start the Conversation Call (844) 623-1234

Apply. Fund. Deliver. — No obligation.

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