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Rates

Asset-Based Lending: Capital Secured by Your Business Assets

Asset-based lending (ABL) provides working capital secured by accounts receivable, inventory, equipment, or real estate. PeerSense connects you with ABL lenders who understand your industry and close quickly.

What is asset-based lending?

Asset-based lending (ABL) provides lines of credit secured by accounts receivable, inventory, and equipment — not personal guarantees or tax returns. Typical facilities range from $1M to $100M with advance rates of 80–85% on AR and 50–65% on inventory, giving businesses immediate liquidity tied to real collateral.

Written by Ed Freeman, Capital Advisory — PeerSense. Updated April 2026.

Asset-Based Lending Products

Turn your receivables, inventory, and purchase orders into immediate working capital.

Accounts Receivable Factoring

$100K–$10M/month24–72 hours

Sell your outstanding invoices for immediate cash. Non-recourse options available (lender takes the credit risk, not you). Works for staffing, manufacturing, transportation, construction, healthcare billing.

  • Immediate cash on invoices
  • Non-recourse options available
  • No debt on balance sheet
  • Scales with revenue

Asset-Based Lines of Credit

$250K–$30M1–3 weeks

Revolving credit line secured by AR and inventory. Advances against eligible collateral as you invoice. Common for manufacturers, distributors, and businesses with irregular revenue cycles.

  • Revolving credit structure
  • Secured by AR and inventory
  • Flexible draw schedule
  • Lower rates than factoring

Purchase Order Financing

$50K minimum3–7 days

Get funded on confirmed purchase orders before you produce or ship. Works for domestic and international orders. Used by manufacturers, distributors, and importers.

  • Fund confirmed POs
  • Domestic and international
  • No collateral required
  • Fast approval

Supply Chain Finance

Up to $5M1–2 weeks

Unsecured supply chain finance. No personal guarantee on select programs. Faster than traditional lending. Revenue-based underwriting.

  • Unsecured options available
  • No personal guarantee (select programs)
  • Revenue-based underwriting
  • Fast deployment

When Asset-Based Lending (ABL) Beats SBA

Asset-based lending isn't always the right choice — but when speed, flexibility, and asset-driven underwriting matter, it often wins.

FactorAsset-Based LendingSBA Loans
SpeedDays to weeksMonths
Personal GuaranteeNot required on some programsAlways required
Credit RequirementsFlexible — asset-basedStrict — 680+ FICO typical
ScalabilityScales with revenueFixed loan amount
CollateralAR, inventory, POsAll business assets
CostHigher ratesLower rates

When to Choose ABL Over SBA

  • You need capital in days or weeks, not months
  • You need asset-driven underwriting where collateral quality matters more than traditional metrics
  • You want capital that scales with your revenue
  • You prefer not to pledge all business assets

Industries We Serve

Asset-based lending works across industries — anywhere there are receivables, inventory, or purchase orders.

Manufacturing

AR factoring, inventory financing, PO funding

Staffing

Payroll funding, non-recourse factoring

Trucking & Logistics

Freight factoring, fuel advances

Healthcare

Medical billing factoring, AR financing

Distribution

Inventory lines, PO financing

Construction

Progress billing factoring, contract financing

Frequently Asked Questions

Factoring is the sale of individual invoices for immediate cash. An Asset-Based Lending (ABL) line of credit is a revolving facility secured by your receivables and inventory. Factoring is faster and easier to qualify for; ABL lines typically have lower rates but require more underwriting.

Need Asset-Based Financing? Let's Talk.

PeerSense connects you with ABL lenders who understand your industry and close quickly. One conversation. Direct introduction.