Asset-based lending (ABL) is a type of lending secured by an asset, meaning that if the loan is not repaid, the asset is taken as collateral. ABL is usually designed to allow a company to bridge itself between the timing of cashflows of payments it receives and expenses. With ABL, a lender will focus primarily on the value of a businesss assets, which are used as collateral to secure a loan. A broad range of a companys assets, ranging from accounts receivable to real estate and even brand names and intellectual property, can serve as collateral, unlocking needed capital. ABL may provide access to significant financing with a covenant-light structure, while also offering a level of flexibility in making future decisions that may not be possible with other types of loans. A business that has fixed assets on the balance sheet can leverage those assets to access additional working capital. ABL can be an effective, less expensive option to finance asset-heavy businesses with low cash flow.