Asset-Based Lending (ABL)

Asset-based lending (ABL) is a type of business financing secured by your company’s assets—like accounts receivable, inventory, equipment, or real estate. The more valuable your assets, the more you can typically borrow. It’s a flexible way to access working capital without giving up equity or relying solely on cash flow.

ABL is ideal for established businesses with valuable assets and predictable revenue cycles. It’s commonly used in manufacturing, wholesale, logistics, and other asset-heavy industries—especially when traditional bank loans aren't accessible or fast enough.

The amount depends on the value and type of assets you pledge. Lenders usually advance 70–90% of accounts receivable, 50–70% of inventory, and up to 80% of equipment value. Real estate-backed ABLs can yield even higher limits depending on the property and market conditions.

Unlike unsecured or cash-flow loans, ABL uses your business assets as collateral, which can lower risk for the lender and improve your chances of approval. It’s often faster to obtain and more adaptable to your capital needs—but requires regular reporting and asset monitoring.

As with any secured loan, defaulting could result in the lender seizing the pledged assets. However, most lenders work closely with borrowers to avoid this outcome, and Bread Route strive to partner with transparent providers who prioritize long-term relationships.