Asset-Based Lending (ABL) for Chicago Businesses
Definition: Asset-based lending allows businesses to secure loans using their assets as collateral. These assets can include accounts receivable, inventory, machinery, equipment, and sometimes even intangible assets like trademarks or copyrights. Benefits: Flexibility : ABL is often more flexible than traditional bank loans. As the business's assets grow, the line of credit can also be increased, allowing for scalable financing solutions. Accessibility : For businesses that might not qualify for traditional bank loans due to credit issues or lack of a long operational history, ABL offers an alternative borrowing option. Speed : The approval process for asset-based loans can be faster than traditional loans, providing businesses with quick access to capital. How ABL Works for Chicago Businesses : Valuation : Lenders will assess the value of the assets being used as collateral. In the context of Chicago, this might involve local experts or evaluator