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Looking for flexible funding? Asset-based loans (ABL) are secured loans where borrowers pledge assets as collateral. These loans provide a lump sum of funds, secured by assets like equipment or inventory. If a borrower defaults, the lender seizes the asset as repayment. Asset-based lending offers small business owners a reliable option to access capital while securing their loans with tangible assets.<br>
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How Asset-Based Loans Work for Small Businesses - Brett Holzhauer Looking for flexible funding? Asset-based loans (ABL) are secured loans where borrowers pledge assets as collateral. These loans provide a lump sum of funds, secured by assets like equipment or inventory. If a borrower defaults, the lender seizes the asset as repayment. Asset-based lending offers small business owners a reliable option to access capital while securing their loans with tangible assets. Asset-based loans (ABL) are more commonly called secured loans because they require that the borrower pledge an asset in order to receive the funds. The asset acts as collateral for the issuing lender. If the borrower defaults, the financial institution seizes the asset as repayment for the debt. Asset-based lending works like any other small business lending option, where the borrower receives a lump sum of money and repays the entire loan amount plus financing costs to the issuing lender. The difference is that asset-based lenders secure the funds they issue with collateral. . Source url: - https://www.biz2credit.com/term-loan/asset-based-loans-how-they-work