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Private credit glossary · Live data July 2026

What is asset-based lending (ABL)?

Asset-based lending is debt secured by specific business assets — receivables, inventory, equipment, or other collateral — with the borrowing base recalculated as those assets change, letting companies borrow against what they own rather than only what they earn.

443

active ABL funds in the Agentas database

$10M$100M

median stated check-size band

How it works

  • The credit line floats with a borrowing base (e.g., 85% of eligible receivables).
  • Field exams and collateral reporting replace some cash-flow covenants.
  • Works for borrowers with lumpy earnings but strong assets.

When borrowers use it

  • Working-capital-heavy businesses (distribution, manufacturing, staffing) with seasonal swings.
  • Turnarounds or growth phases where cash-flow leverage is capped.

Related terms

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