Asset-Based Lending

Asset‑based lending (ABL) continues to be a strategic source of liquidity for companies seeking flexible financing tied directly to the value of their assets. In a market where performance, collateral quality and real-time reporting drive credit availability, both borrowers and lenders must navigate a legal landscape that is highly technical, operationally intensive, and fast‑moving.

To support clients who are both providing and seeking ABL, Goodmans provides legal counsel on the following:

• Structuring and Documenting ABL Facilities. We design, draft, and negotiate all core ABL documentation, including credit agreements, security packages, borrowing base mechanics, reserve structures, intercreditor arrangements, and cash‑management systems, ensuring clarity, enforceability, and alignment with business realities.
• Collateral and Priority Analysis. Goodmans advises on collateral eligibility, security‑interest perfection strategies, Personal Property Security Act (PPSA) and cross‑border lien considerations, priority disputes, purchase‑money security interest (PMSI) issues, and intercreditor priority frameworks.
• Distressed Scenario Support. Our team guides clients through underperformance and default scenarios, providing strategic advice on remedies, forbearance arrangements, collateral realization, liquidation processes, and coordination with insolvency professionals.