Asset Based Lending: 

Asset-based lending (ABL) is a type of financing that provides working capital to businesses by using their assets as collateral. This financing option allows businesses to borrow against a percentage of their assets, such as accounts receivable, inventory, equipment, and real estate, depending on the lender's policies.

Asset-based lending is a flexible and efficient way for businesses to obtain funding, especially when traditional lending options are not available. It provides quick access to capital and can be structured as a revolving line of credit or a term loan. The repayment terms for ABL can vary depending on the lender and the business's needs.

ABL is most commonly used for working capital, acquisition, turnaround financing, capital expenditures, growth, refinancing/restructuring, or a buyout. It is ideal for companies with strong asset bases but may have limited financial resources or cash flow issues.

The amount of funds dispersed by lenders in asset-based lending is based on a percentage of a company's assets, with commercial accounts receivable being the most common form of collateral. Lenders usually advance up to 90% of the value of a company's accounts receivable, up to 60% of the finished inventory, and up to 60% of the appraised tangible equipment. Raw materials are usually considered on a case-by-case basis, and real estate is typically financed at 65-75% of the appraised value when not a prime asset.

Asset-based lending can be a great solution for businesses looking for an alternative financing option to traditional loans. It provides businesses with access to working capital while leveraging their existing assets, allowing them to focus on growing their operations and achieving their long-term goals.