Gaining Popularity Of Asset-Based Lending

Overview and Background

As the lending market continues to evolve and the need for financing from less than traditional banking sources increased as the willingness for businesses to consider a broader range of funding solutions, asset-based lending (ABL) has come to the fore.

ABL has found itself in the position of becoming a significant part of the thriving FinTech and ShareEconomy industries – to such extent, that it seems to promise a disruption to the status quo in having access to credit as the lifeblood of business and economic growth. ABL, working well for borrowers with greater financial leverage and/or marginal cash flows, can be explained quite simply. In a nutshell, a financing (granted in what ever form) based on assets and structured to provide a flexible source of working capital by monetizing assets otherwise sleeping on the balance sheet. So whatever kind of assets a business has on its balance sheet (which can be quickly and easily liquidated)