ABL, or Asset-Based Lending, is a type of financing where loans are secured by collateral, typically in the form of assets like inventory, accounts receivable, or equipment. This method allows businesses to access funds based on the value of their assets, making it a popular choice for companies that may not qualify for traditional loans. In ABL, lenders assess the value of the assets to determine the loan amount. This approach can provide quicker access to capital and is often used by businesses in need of working capital or those facing cash flow challenges. It is particularly beneficial for companies in industries such as manufacturing and retail.