ABL is a revolving or term facility secured by your assets — accounts receivable, inventory, equipment, and real estate — so your availability scales with the business.
For operators with strong assets but uneven earnings, asset-based lending unlocks borrowing power that a conventional cash-flow loan won’t. Modavva arranges asset-based facilities from $1M to $100M, structured to your collateral and priced far below the triple-digit effective cost of merchant cash advances.
What can be in your borrowing base
- Accounts receivable — typically the largest driver, often advanced up to ~75% of eligible A/R.
- Inventory — raw materials and finished goods.
- Equipment — machinery and rolling stock.
- Real estate — owner-occupied or commercial property.
ABL vs. a merchant cash advance
An MCA buys your future receivables at a steep discount and collects daily, regardless of your collections. ABL lends against your receivables and assets, prices to collateral, and services monthly. For a receivables-heavy B2B operator, that’s the difference between cash flow timed to a funder and cash flow timed to your own customers.
Who it fits
Receivables- and asset-heavy operators: distribution and wholesale, manufacturing, construction and trades, staffing and services, logistics and transport, healthcare services. If you carry the assets, we can usually build a facility around them — and use it to get you off MCA debt.
Let’s see your real position.
Confidential review, no obligation, typically a same-week first response.
Frequently asked questions
How much can I borrow with asset-based lending?
It depends on your eligible collateral. Facilities are arranged from $1M to $100M, with A/R often advanced up to ~75% of eligible receivables and additional availability from inventory, equipment, and real estate.
Can ABL be used to pay off my MCAs?
Yes — that’s a common structure. The ABL facility provides the capital to consolidate or refinance the advances and gives you ongoing revolving availability.
Is ABL a bank loan?
It can come from banks or private credit lenders. Modavva is lender-agnostic and arranges the facility through whichever capital source best fits your situation; we are not the direct lender.