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 to 10.50% (SOFR + 350 to 650 bps), non bank/specialty ABL 9.50 to 13.50%, stretch ABL with term loan tranche 10.00 to 14.00%, transactional factoring 12.00 to 48.00% APR equivalent (varies by industry + obligor), SBA MARC ($5M revolving for manufacturers) 9.50 to 10.25% (Prime + 2.0 to 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 to 85% (deduct ineligibles like dilution, concentration), inventory 50 to 65% (deduct slow moving + obsolete), finished goods 50 to 60%, raw materials 40 to 55%, work in process typically excluded or 30 to 40% on engineered to order with documented value, equipment 50 to 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 to 9.00%, ABL revolver 7.50 to 10.50%.

Q: When does ABL replace factoring?

Above $5 to 10M average AR balance, ABL revolving credit lines typically price 200 to 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 to 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 to 10.25% (Prime + 2.0 to 2.75%) with up to 20 year term, the longest revolving SBA product available. Vs. conventional bank ABL 7.50 to 10.50%, MARC is comparable on rate but offers materially longer term + SBA backing + simpler covenants. Best fit: manufacturers $3M to $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 to $75K per exam). First field exam happens within 60 to 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 to 10.50% (SOFR + 350 to 650 bps), non bank/specialty ABL 9.50 to 13.50%, stretch ABL 10.00 to 14.00%, factoring 12 to 48% APR equivalent, SBA MARC 9.50 to 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 to 10.50%	5-yr commitment	$10M to $500M+	$20M+ revenue, audited financials, EBITDA positive
SBA MARC (NAICS 31/32/33)	9.50 to 10.25%	up to 20 yr	$250K to $5M	U.S. manufacturers, longer term + SBA backed
Specialty / Non Bank ABL	9.50 to 13.50%	3-5 yr	$10M to $200M+	Turnarounds, sub-$20M revenue, weaker covenants
Stretch ABL (with term tranche)	10.00 to 14.00%	3-5 yr	$10M to $200M+	Acquisition financing, LBO senior debt, recap
Transactional Factoring	12.00 to 48.00% APR eq	per-invoice	$10M to $50M	Sub-$5M revenue, individual invoice liquidity
PO Financing	12.00 to 24.00%	per PO	$10M to $50M	Importers, distributors, growth cycle gaps
Inventory only Financing	11.00 to 16.00%	12-24 mo	$10M to $50M	High velocity inventory, seasonal cycles

Bank ABL Revolver7.50 to 10.50%
Term
5-yr commitment
Loan Size
$10M to $500M+
Best For
$20M+ revenue, audited financials, EBITDA positive
SBA MARC (NAICS 31/32/33)9.50 to 10.25%
Term
up to 20 yr
Loan Size
$250K to $5M
Best For
U.S. manufacturers, longer term + SBA backed
Specialty / Non Bank ABL9.50 to 13.50%
Term
3-5 yr
Loan Size
$10M to $200M+
Best For
Turnarounds, sub-$20M revenue, weaker covenants
Stretch ABL (with term tranche)10.00 to 14.00%
Term
3-5 yr
Loan Size
$10M to $200M+
Best For
Acquisition financing, LBO senior debt, recap
Transactional Factoring12.00 to 48.00% APR eq
Term
per-invoice
Loan Size
$10M to $50M
Best For
Sub-$5M revenue, individual invoice liquidity
PO Financing12.00 to 24.00%
Term
per PO
Loan Size
$10M to $50M
Best For
Importers, distributors, growth cycle gaps
Inventory only Financing11.00 to 16.00%
Term
12-24 mo
Loan Size
$10M to $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 to 4.55% range seen in early 2026. Bank ABL revolvers (SOFR + 350 to 650 bps) have mechanically followed SOFR lower.
Bank ABL spreads compressed 10 to 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 to 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 to 1, Spot factoring: 12 to 48% APR (just in time liquidity)
Year 1 to 4, Whole ledger factoring: 12 to 30% APR ($1M to $10M revenue)
Year 3+, ABL revolver: 9.50 to 13.50% (specialty) → 7.50 to 10.50% (bank, $10M+)
Year 5+, Bank LOC: 6.50 to 9.00% (audited financials, $20M+)
Manufacturers any year, SBA MARC: 9.50 to 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 to 10.50% (SOFR + 350 to 650 bps), specialty ABL 9.50 to 13.50%, stretch ABL 10.00 to 14.00%, factoring 12 to 48% APR eq, SBA MARC 9.50 to 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 to 85%, inventory 50 to 65%, finished goods 50 to 60%, raw materials 40 to 55%, work in process typically excluded or 30 to 40%, equipment 50 to 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 to 10M average AR balance, ABL prices 200 to 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 to 10.50% as of July 2026. Pricing SOFR + 350 to 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 to 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 to 10.25% (Prime + 2.0 to 2.75%) with up to 20 year term. Vs. bank ABL 7.50 to 10.50%, MARC is comparable on rate but offers longer term + SBA backing + simpler covenants. Best fit: manufacturers $3M to $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 to $75K per exam, borne by borrower. First exam within 60 to 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. These are indicative levels direct capital sources have been pricing across these programs as of October 1, 2026.

Originator warehouse

$100M a month

Focus $100 million a month. Will look at $10 million a month. $10 million is not the focus.

See current rates

Invoice Factoring

0.5 to 3.5% / 30d

B2B invoices from $20 million a month. Advance 80 to 95 percent of face.

See current rates

CMBS Conduit

5.60 to 7.10%

10 year Non Recourse fixed, $10 million and up, fully assumable

See current rates

Bridge Loans

9.00 to 14.00%

$10 million and up. Cash in about 35 percent. Name the takeout first.

See current rates

Data Center

CRS to 89%

$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.

See current rates

Contracted revenue sale

Up to 89%

15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.

See current rates

Hotel Financing

Hotel financing is search only for $10 million and up, with cash in about 35 percent.

See current rates

Private Credit

7.80 to 18.00%

Non bank flexibility for commercial real estate at $10 million and up.

See current rates

SBA 7(a) & 504

Search path. Not a growth lane on this desk.

See current rates

Indicative only, as of October 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 sources the file. The lender sets pricing. What these terms mean.

Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense sources capital through a curated network of commercial lenders and capital sources. 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.