Financial Poise
Business Borrowing Basics - Asset-Based Lending

Asset-Based Lending

Asset-based lending, or an asset-based loan (ABL) is made by a lender who underwrites the loan primarily by valuing the company’s assets, such as accounts receivable (A/R) and inventory. An ABL lender can be distinguished from a “cash flow” lender in that while a cash flow lender secures its loan against the borrower’s assets, as does an ABL lender, the cash flow lender underwrites the loan based on the cashflow and general credit-worthiness of the borrower. An ABL lender, in contrast, looks primarily to the ability to liquidate its collateral should it need to, to be repaid. Since ABL lenders are willing to provide loans to companies with weaker financial performance, they are able to provide financing to companies who are not eligible for a cash flow loan. ABL lenders typically charge higher interest rates than cash flow lenders as a result of greater risk of non-performance. This webinar explains ABLs, explores its pros and cons, and discusses the basics of negotiating one.


Webinar Faculty

Moderator:

Jonathan Friedland
Jonathan Friedland

Jonathan Friedland, a senior partner with Sugar Felsenthal Grais & Helsinger, LLP, views his job simply: to make money for clients whenever possible and to protect their interests at every… Read More

Panelists:

No Headshot Available
Mark Seigel

Seigel is the President of Veritas. Prior to Veritas, Seigel was chief investment officer of BMD Management Company, a private equity firm that managed assets for high net worth families. In… Read More

No Headshot Available
Paul Clinkscales

Paul Clinkscales has held various roles as a seasoned executive leader and business advisor. He currently serves as Director of Finance & Operations for Aesir Media Group, a specialty niche… Read More

No Headshot Available
Robert Miller

Robert Miller is executive vice president at Rosenthal & Rosenthal, Inc., in New York. He is the head of the firm's Asset-Based Lending Group. Read More

>