Market Trends 2019/20: Asset-Based Lending

Summary

This practice note provides an overview of asset-based lending in the U.S. loan market and discusses current market trends in publicly filed asset-based loan agreements from the second half of 2019 and first half of 2020, along with links to additional resources in Practical Guidance. Asset-based loans (sometimes referred to as ABLs) are used by a wide variety of businesses, both in terms of size and credit quality, and may also be used for a number of different purposes. Asset-based loans were traditionally a financing option for small- and medium-sized enterprises without access to other traditional forms of financing but have evolved to also provide larger companies with another source of capital for their businesses.