BUSINESS FINANCE GLOSSARY
ABL
Asset-Based Lending
Financing primarily supported by eligible assets such as receivables or inventory.
What does ABL mean?
Financing primarily supported by eligible assets such as receivables or inventory. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
ABL in context
A distributor borrows against a formula based on eligible accounts receivable.
Why it matters in financing
ABL can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related business finance terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.