What are current ABL (asset-based lending) rates (July 2026)?

As of July 1, 2026, ABL rates by lender type: bank ABL revolver 7.50–10.50% (SOFR + 350-650 bps), non-bank/specialty ABL 9.50–13.50%, stretch ABL with term loan tranche 10.00–14.00%, transactional factoring 12.00-48.00% APR equivalent (varies by industry + obligor), SBA MARC ($5M revolving for manufacturers) 9.50–10.25% (Prime + 2.0-2.75%). Bank ABL is the cheapest revolving working capital for $10M+ revenue companies with diversified AR + clean reporting.

ABL Rate Tracker · Updated Weekly

Today's ABL (Asset-Based Lending) Rates, July 2026

Q: What are typical ABL borrowing-base advance rates?

ABL borrowing-base advance rates by collateral type (July 2026): eligible AR 80-85% (deduct ineligibles like dilution, concentration), inventory 50-65% (deduct slow-moving + obsolete), finished goods 50-60%, raw materials 40-55%, work-in-process typically excluded or 30-40% on engineered-to-order with documented value, equipment 50-75% of orderly liquidation value (OLV) appraisal. The borrowing base equals the sum of advances minus reserves; the credit facility caps at the borrowing base or stated commitment, whichever is lower.

Q: What's the difference between ABL revolver and bank LOC?

Bank LOC: underwrites the BORROWER (financial covenants, debt-to-equity, DSC), uses fixed commitment, monthly/quarterly reporting, simpler structure. ABL revolver: underwrites the COLLATERAL (AR + inventory + equipment), uses dynamic borrowing base (commitment fluctuates with collateral value), monthly borrowing-base certificates + field exam annually + more granular reporting. ABL works for borrowers who don't fit bank LOC covenants but have strong asset base. Pricing: bank LOC 6.50-9.00%, ABL revolver 7.50-10.50%.

Q: When does ABL replace factoring?

Above $5-10M average AR balance, ABL revolving credit lines typically price 200-600 bps tighter than transactional factoring. Companies graduate from factoring to ABL when: (1) revenue exceeds $10M, (2) AR concentration is diversified, (3) the company has audited financials, (4) management can deliver monthly borrowing-base reporting on time. ABL is the cheaper structure once the company can support the reporting cadence + field-exam scrutiny.

Q: What's the difference between bank ABL and specialty ABL?

Bank ABL platforms price 7.50% to 10.50% with strict borrower quality requirements (typically $20M+ revenue, audited financials, EBITDA positive). Specialty and non bank ABL platforms price 9.50% to 13.50% but accept more challenging borrowers, turnaround situations, smaller revenue ($5M+), recent losses, weaker covenant profile. Specialty ABL works where bank ABL declines.

Q: What is stretch ABL?

Stretch ABL combines an ABL revolver (against AR + inventory) with a term loan tranche supported by enterprise value or equipment + IP. Total facility extends beyond the pure asset borrowing base. Pricing 10.00-14.00% blended. Used for: acquisition financing, leveraged-buyout senior debt, recap with growth capital. Riskier than pure ABL (the term loan tranche has less hard-asset collateral), so spread is wider.

Q: Is the SBA MARC program competitive with conventional ABL?

Yes, for U.S. manufacturers (NAICS 31, 32, 33), the SBA MARC program offers $5M revolving credit at 9.50-10.25% (Prime + 2.0-2.75%) with up to 20-year term, the longest revolving SBA product available. Vs. conventional bank ABL 7.50-10.50%, MARC is comparable on rate but offers materially longer term + SBA-backing + simpler covenants. Best fit: manufacturers $3M-$50M revenue who don't qualify for bank ABL, OR who want longer term than conventional 5-year ABL commitments.

Q: What's the ABL field exam process?

Field exam is the lender's annual on-site verification of collateral. Standard scope: AR aging confirmation (selected obligor calls + invoice verification), inventory count + classification audit + obsolete reserve review, equipment OLV verification + serial-number checks, financial reporting accuracy review. Cost typically borne by borrower ($25K-$75K per exam). First field exam happens within 60-90 days of facility close; subsequent annually. Field-exam failures (material discrepancies) trigger borrowing-base reductions or covenant defaults.

Q: Who are the active ABL lenders in July 2026?

Active ABL capital in July 2026 comes from two archetypes: bank ABL platforms at the major and super regional banks, and specialty non bank ABL (institutional credit funds with ABL platforms, BDCs with private credit allocation, and regional specialty operators). PeerSense routes deals to the platform whose box fits based on revenue, EBITDA profile, AR composition, and reporting maturity.

Current asset-based lending rates as of July 1, 2026 across bank ABL revolvers, specialty / non-bank ABL, stretch ABL with term loan tranches, transactional factoring, and SBA MARC ($5M manufacturer revolving). AR + inventory + equipment borrowing-base advance rates.

Quick Answer

What are current ABL rates as of July 1, 2026?

As of July 1, 2026, ABL rates by lender type: bank ABL revolver 7.50–10.50% (SOFR + 350-650 bps), non-bank/specialty ABL 9.50–13.50%, stretch ABL 10.00–14.00%, factoring 12-48% APR equivalent, SBA MARC 9.50–10.25%. Bank ABL is cheapest revolving working capital for $10M+ revenue companies with diversified AR.

, PeerSense Capital Advisory · Updated July 1, 2026

ABL Rates by Program, July 1, 2026

As of July 1, 2026

Program	Current Rate	Term	Loan Size	Best For
Bank ABL Revolver	7.50–10.50%	5-yr commitment	$5M – $500M+	$20M+ revenue, audited financials, EBITDA positive
SBA MARC (NAICS 31/32/33)	9.50–10.25%	up to 20-yr	$250K – $5M	U.S. manufacturers, longer term + SBA-backed
Specialty / Non-Bank ABL	9.50–13.50%	3-5 yr	$5M – $200M+	Turnarounds, sub-$20M revenue, weaker covenants
Stretch ABL (with term tranche)	10.00–14.00%	3-5 yr	$10M – $200M+	Acquisition financing, LBO senior debt, recap
Transactional Factoring	12.00–48.00% APR-eq	per-invoice	$1M – $50M	Sub-$5M revenue, individual-invoice liquidity
PO Financing	12.00–24.00%	per-PO	$500K – $50M	Importers, distributors, growth-cycle gaps
Inventory-only Financing	11.00–16.00%	12-24 mo	$1M – $50M	High-velocity inventory, seasonal cycles

Bank ABL Revolver7.50–10.50%
Term
5-yr commitment
Loan Size
$5M – $500M+
Best For
$20M+ revenue, audited financials, EBITDA positive
SBA MARC (NAICS 31/32/33)9.50–10.25%
Term
up to 20-yr
Loan Size
$250K – $5M
Best For
U.S. manufacturers, longer term + SBA-backed
Specialty / Non-Bank ABL9.50–13.50%
Term
3-5 yr
Loan Size
$5M – $200M+
Best For
Turnarounds, sub-$20M revenue, weaker covenants
Stretch ABL (with term tranche)10.00–14.00%
Term
3-5 yr
Loan Size
$10M – $200M+
Best For
Acquisition financing, LBO senior debt, recap
Transactional Factoring12.00–48.00% APR-eq
Term
per-invoice
Loan Size
$1M – $50M
Best For
Sub-$5M revenue, individual-invoice liquidity
PO Financing12.00–24.00%
Term
per-PO
Loan Size
$500K – $50M
Best For
Importers, distributors, growth-cycle gaps
Inventory-only Financing11.00–16.00%
Term
12-24 mo
Loan Size
$1M – $50M
Best For
High-velocity inventory, seasonal cycles

Rates indicative as of July 1, 2026 across active ABL lenders + factoring operators. Bank ABL pricing SOFR (current 3.68%) + 350-650 bps based on facility size + borrower credit + collateral mix. Specialty ABL prices wider for borrowers outside bank ABL credit box. SBA MARC Prime + 2.0-2.75% (Prime 6.75%). Factoring APR-equivalent depends on industry + obligor + AR aging.

What Changed This Month (July 2026 vs July 2026)

SOFR at 3.68%, down significantly from the 4.30–4.55% range seen in early 2026. Bank ABL revolvers (SOFR + 350-650 bps) have mechanically followed SOFR lower.
Bank ABL spreads compressed 10-25 bps, bank credit appetite for working capital lending returned to mid-2025 levels. Larger facilities ($50M+) compressed more than smaller.
Specialty ABL spreads stable, non-bank ABL operators maintained discipline on weaker-credit segment. Spreads 250-400 bps wider than bank ABL.
SBA MARC fee waivers extended, FY2026 SBA fee reductions for manufacturers continue through Q3 2026, materially lowering all-in cost on MARC + 7(a) stacked structures.

Working Capital Graduation Curve

Working capital finance is a graduation curve. Most companies move from one product to the next as they grow:

Year 0-1, Spot factoring: 12-48% APR (just-in-time liquidity)
Year 1-4, Whole-ledger factoring: 12-30% APR ($1M-$10M revenue)
Year 3+, ABL revolver: 9.50-13.50% (specialty) → 7.50-10.50% (bank, $10M+)
Year 5+, Bank LOC: 6.50-9.00% (audited financials, $20M+)
Manufacturers any year, SBA MARC: 9.50-10.25% (20-year term, $5M revolving)

When ABL Wins vs Bank LOC vs Factoring

Bank LOC wins: $20M+ revenue, audited financials, EBITDA positive, simple covenant profile. Bank ABL wins: $10M+ revenue with diversified AR, EBITDA marginal, asset-rich balance sheet, ability to support monthly borrowing-base + annual field exam. Specialty ABL wins: $5M+ revenue, turnaround situations, recent losses, weaker covenants. Factoring wins: sub-$5M revenue, individual-invoice liquidity needs, customer-concentration profiles, speed-of-funding priority. SBA MARC wins: U.S. manufacturers wanting 20-year term + SBA backing.

Where to Go Next

Full ABL details at Asset-Based Lending. Factoring strategy at B2B Factoring Strategy. Manufacturer revolving credit at SBA MARC Loan. Cost calculator at Factoring Cost Calculator. Compare across rate hubs at Commercial Lending Rates Hub.

Current ABL Rates Frequently Asked Questions

What are current ABL rates (July 2026)?+

As of July 1, 2026: bank ABL 7.50–10.50% (SOFR + 350-650 bps), specialty ABL 9.50–13.50%, stretch ABL 10.00–14.00%, factoring 12-48% APR-eq, SBA MARC 9.50–10.25%. Bank ABL is cheapest revolving working capital for $10M+ revenue companies with diversified AR + clean reporting.

What are typical ABL borrowing-base advance rates?+

Eligible AR 80-85%, inventory 50-65%, finished goods 50-60%, raw materials 40-55%, work-in-process typically excluded or 30-40%, equipment 50-75% of orderly liquidation value (OLV) appraisal. Borrowing base = sum of advances minus reserves; facility caps at borrowing base or stated commitment, whichever lower.

What's the difference between ABL revolver and bank LOC?+

Bank LOC underwrites the BORROWER (covenants, debt-to-equity, DSC), fixed commitment, simpler structure. ABL revolver underwrites COLLATERAL (AR + inventory + equipment), dynamic borrowing base, monthly certificates + annual field exam. ABL works for borrowers who don't fit bank LOC covenants but have strong asset base.

When does ABL replace factoring?+

Above $5-10M average AR balance, ABL prices 200-600 bps tighter than transactional factoring. Companies graduate when: (1) revenue >$10M, (2) diversified AR concentration, (3) audited financials, (4) monthly borrowing-base reporting capability.

What are bank ABL revolver rates?+

Bank ABL revolver rates 7.50-10.50% as of July 2026. Pricing SOFR + 350-650 bps based on facility size, borrower credit, collateral mix. Larger facilities ($25M+) and cleaner balance sheets price tighter. Typical structure: revolving line + IO + 5-year commitment + monthly borrowing base + annual field exam.

What's the difference between bank ABL and specialty ABL?+

Bank ABL platforms price 7.50% to 10.50% with strict requirements ($20M+ revenue, audited, EBITDA positive). Specialty and non bank ABL platforms price 9.50% to 13.50% but accept challenging borrowers: turnarounds, smaller revenue, recent losses.

What is stretch ABL?+

Stretch ABL combines ABL revolver with term loan tranche supported by enterprise value or equipment + IP. Total facility extends beyond pure asset borrowing base. Pricing 10.00-14.00% blended. Used for acquisition financing, LBO senior debt, recap with growth capital.

Is SBA MARC competitive with conventional ABL?+

Yes, for U.S. manufacturers (NAICS 31/32/33), MARC offers $5M revolving at 9.50-10.25% (Prime + 2.0-2.75%) with up to 20-year term. Vs. bank ABL 7.50-10.50%, MARC is comparable on rate but offers longer term + SBA-backing + simpler covenants. Best fit: manufacturers $3M-$50M revenue.

What's the ABL field exam process?+

Field exam is annual on-site collateral verification. Scope: AR aging confirmation, inventory count + classification + obsolete reserve, equipment OLV checks, financial reporting accuracy. Cost ~$25K-$75K per exam, borne by borrower. First exam within 60-90 days of close; subsequent annually.

Who are the active ABL lenders in July 2026?+

Active ABL capital comes from two archetypes: bank ABL platforms at the major and super regional banks, and specialty non bank ABL (institutional credit funds with ABL platforms, BDCs with private credit allocation, regional specialty operators). PeerSense routes each deal to the platform whose box fits.

Related Rate Hubs & Tools

See Related Rates by Program

PeerSense covers the full commercial capital stack. Indicative levels that lenders in our network have been pricing across these programs, as of August 1, 2026.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive. Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Indicative only, as of August 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense does not lend and does not set pricing. What these terms mean.

Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense is a capital advisory firm, not a lender. Content is for educational purposes only. Rates and structures reflect approximate July 1, 2026 market conditions and may not reflect conditions at time of reading. ABL pricing varies by facility size, borrower credit, collateral mix, field-exam findings, and reporting cadence. Consult an active ABL lender for transaction-specific quotes.