This simply stands for Asset Based Lending.
Asset-based lending is a form of asset-based finance that uses assets on your balance sheet as security against lending. This includes physical assets such as:
It can also include intangible assets such as intellectual property (IP).
As the loan is secured by an asset, asset-based lending is considered less risky compared to unsecured lending (a loan that is not backed by an asset or assets) and, therefore, results in a lower interest rate charged. In addition, the more liquid the asset, the less risky the loan is considered and the lower the interest rate demanded.
For example, an asset-based loan secured by accounts receivable would be deemed safer than an asset-based loan secured by a property – the property is illiquid, and the creditor might find it difficult to liquidate the asset on the market quickly.