ABL: The acronym that describes different approaches to a trillion-dollar industry

Asset-based lending and asset-backed lending can be easily confused but represent contrasting lending activities. Richard Gumbrecht of Secured Finance Network explains the differences.

Richard Gumbrecht

When someone in private markets says “ABL” what do they mean?

The acronym can refer both to asset-based and asset-backed lending. The problem is that these are fundamentally different credit frameworks. The distinction matters, because it can lead investors and regulators to draw the wrong conclusions about the risk and resilience of a financial mechanism that quietly supports the mid-market.