Asset-Based Line of Credit: A Flexible Financing Solution for Growing Businesses
Businesses can experience strong sales and still face working-capital pressure when customer payments arrive later than payroll, inventory purchases, supplier obligations, or project expenses. An Asset-Based Line of Credit can help businesses access working capital by leveraging eligible business assets such as accounts receivable, inventory, and equipment. According to TWG Funding Solutions’ Products page, TWG describes its asset-based lending solution as a revolving facility secured by receivables, inventory, or equipment. The facility is designed to replenish as customers pay or inventory turns, providing ongoing access to working capital. What Is an Asset-Based Line of Credit? An Asset-Based Line of Credit (ABL) is a revolving business financing facility secured by qualifying company assets. Instead of relying solely on traditional credit metrics, the financing is structured around the value and quality of assets that can support the borrowing base. Common assets used in ass...