What is Asset Based Financing?
Asset-based lending (ABL) is a type of business financing where a company uses its assets — such as inventory, equipment, real estate, or other asset types — as collateral to secure a loan or line of credit. Since the lender holds something of value as security, they have less risk and therefore place less weight on the borrower's credit history.
How It Works
- Collateral is Key: A lender assesses the value of your company's assets (inventory, invoices, machinery, real estate, securities) to determine the loan amount.
- Borrowing Base: The loan amount fluctuates with the value of eligible assets, often allowing revolving draws.
- Advance Rates: Lenders typically advance 75–90% of receivables value.
Common Collateral Types
✓ Pros
- Easier qualification than cash flow loans
- Quick approval and access to capital
- Flexible use of funds
- Lower interest rates in many cases
- Higher capital amounts possible
Best For
- Businesses with strong assets but inconsistent cash flow
- High capital amount requests
- Growth, buyouts, or seasonal working capital
- When traditional bank loans aren't accessible
GGA and its lenders offer the most flexibility — specialized loan structures based on borrower needs, delivered quickly so you can focus on reaching your next level goals. For higher amounts or large asset values, we also offer monetization structures to give clients the largest competitive advantage.
Will not affect your business or personal credit scoreBenefit from our extensive knowledge, decades of experience and resources to help your business reach its next level of success.