Asset Based Lending (ABL)

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:

• debtors
• stock
• equipment
• machinery
• property

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.

Raise provides flexible funding based on accounts receivables (invoices to clients) to enable agencies to scale quickly and affordably.

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