Asset based finance is commercial funding secured against an asset you already own. It's business finance, not consumer credit. This guide covers how it works, who it's for, what it costs, and how it differs from asset finance, bank lending and cash flow funding.
Asset based finance is short-term commercial funding assessed on the value of an asset, not on the borrower's credit file or financials. For asset-rich, cash-poor businesses, it's a faster path to capital than a bank can offer.
Asset based finance is a category of commercial lending where a loan is secured by, and assessed against, the value of a business or personal asset rather than the borrower's credit history, trading record or financial statements.
The category is also called asset based lending, asset-backed finance, asset-secured lending, or simply a cash-out solution. They all describe the same model, where the asset is the basis of the decision and the loan is secured against it for the duration of the term. Asset finance providers in Australia generally fall into two buckets. Some fund the purchase of a new asset (chattel mortgage, hire purchase, lease), and others lend against assets already owned. ABL is the second kind.
ABL's loans run from $20,000 to $1 million, typically 1 to 3 months and extendable to 9. Exit any time after month one with no penalty, and you pay only for the days you use. We advance up to 70% of the asset's value. The asset can be owned by the business, a director or a third party, as long as it's owned outright or mostly paid off and we can secure against it. See eligible assets.
ABL doesn't replace your bank. Asset based finance sits in the space between needing an answer today and needing to buy time, and a time-critical need doesn't always have weeks to wait. Indicative terms come within 2 hours, and we release funding once the asset is secured, typically 24 to 48 hours from enquiry. It's short-term finance for contingency and the unexpected, not a long-term facility. See why every business needs a plan B.
Asset based finance isn't a general-purpose business loan. It's purpose-built for specific situations where speed matters and an asset is available.
Tax debt is escalating or a Director Penalty Notice has landed, and a bank can be slow or cautious with ATO arrears on the books. See tax debt funding and DPN funding.
Long-term financing is in progress but settlement is weeks away. Asset based finance bridges the gap without adding to the long-term debt structure.
A deal closing, stock at the right price, equipment available now. The opportunity is real but it won't wait for a weeks-long bank process. See emergency funding.
The business needs short-term capital to execute a restructure without taking on long-term debt that compounds the problem.
Asset based finance sits between bank lending and unsecured non-bank lending. Each option solves a different commercial finance problem, and ABL doesn't replace a bank.
| Bank business loan | Cash flow finance | Asset finance (purchase) | Asset based finance (ABL) | |
|---|---|---|---|---|
| What it funds | General business need | Working capital | New asset purchase | Cash against an existing asset |
| Assessment | Credit and financials | Trading history | Asset and serviceability | Asset value only |
| Credit check | Yes | Yes | Yes | No |
| Enquiry to funds | Weeks | 1 to 5 days | Days to weeks | Typically 24 to 48 hours once the asset is secured |
| Loan term | 3 to 30 years | 3 to 24 months | 1 to 7 years | Typically 1 to 3 months, extendable to 9 |
| Cost | Lowest rates | Higher rates | Varies by asset and credit | Priced for speed. You pay only for the days you use |
| Best for | Strong financials, long-term need | Steady trading, working capital | Buying a new asset | Asset-rich, time-critical |
For deeper comparisons, see our guides on asset based finance vs bank lending, asset based finance vs asset finance, asset based finance vs cash flow lending and asset based finance vs caveat loans.
ABL is built specifically for asset based finance, not a general lender that also takes asset security. One product, done properly. Operating from locations across Australia. See also our private business lender guide.
Five steps from enquiry to funds in your account. Typically 24 to 48 hours from enquiry, once the asset is secured.
Truck, machinery, equipment, stock, art, gold. A free desktop valuation shows what it could release.
Issued within 2 hours. Costs upfront, no surprises.
Track It keeps a work asset in use with tracking fitted. Park It suits assets you can spare, at our best rate.
We release funding once the asset is secured.
Exit any time after month one. Repay early, get the asset back.
We work with brokers and advisors across Australia who use asset based finance to solve client situations the banks can't.
The questions we get most about asset based finance in Australia. Call us if yours isn't here.
Indicative terms within 2 hours of enquiry. We release funding once the asset is secured, typically 24 to 48 hours from enquiry. No commitment to call.
Page last updated 12 October 2026. ABL provides short-term secured commercial finance.
