Asset Based Lending

What is Asset Based Lending?

Asset Based Lending (ABL) is one method banks use to create credit facilities for many of their business customers. In ABL, a company’s assets are used as collateral to generate a “Borrowing Base Certificate” which can be drawn against for working capital. Almost any asset a customer has can be utilized as collateral for lending purposes.

For example: account receivable, inventory, fixed assets, real estate, cash or cash equivalents can be tracked and monitored by our application. The two primary assets used are Receivables and Inventory.


1. Seller submits and reviews new sales. Seller(s) can also provide adjustment information at this stage.

2. FinShare applies Eligibility Rules against the entire portfolio.

3. Afterwards, the Bank reviews the portfolio evaluations. If necessary, the Bank can override the evaluations and adjust amounts.

4. Bank approves the portfolio.

5. Seller applies for financing against the portfolio.

6. Bank funds requesting for financing.

7. Seller pays the bank on the maturity date.

Benefits of the FinShare Solution

  • An online or printed report listing the assets accepted or not accepted by the bank.
    • Items not accepted could be duplicate invoices, bad credit rating of the buyer, OFAC’s list, etc.

  • Creates a “Borrowing Base Certificate” which serves as the client’s agreement for the revolver and/ or facility update per asset valuation.
    • Also creates all other documents a bank may need to set up an ABL customer.

  • Automated uploading of borrower’s assets.

  • Online customer view/access of processes and ongoing status which allows for more visibility.

  • Online and real-time reporting and amendments.

  • Tracking of all items, including payments at the lowest level.

  • Creates and tracks all customer communication.

Ready to join the FinShare solution?