Market Insights: Asset-Based Lending Trends for 2024-25

Explore the evolving landscape of  asset-based lending (ABL) facilities, including loan purposes, borrowing base structures, and financial covenant trends drawn from recent credit agreements. Read this new practice note highlighting how ABL structures are adapting to borrower needs and market conditions, with analysis from over 120 recent credit agreements.

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Related Content

• Reserve-Based Loans
  Read this discussion of the key characteristics of reserve-based loans. Oil and gas (O&G) exploration and production activities are capital intensive. O&G companies have several main ways of financing these activities, including equity financing, third-party high-yield debt financing, and reserve-based financing.

• Financial Covenants in Asset-Based Lending
  See this practice note on financial covenants in asset-based credit facilities. While cash flow of a business is important in an asset-based facility, particularly as it relates to the real-time liquidity of the borrower based on excess availability, there is significantly less emphasis on financial covenants in an asset-based facility than in a cash-flow facility.

• Equity Cure Right Clauses (Credit Agreement)
  Consider the provisions of this equity cure right clause for use in a credit agreement where the parent company of the borrower (or private equity sponsor in a sponsor-led transaction) contributes cash to the borrower to help it meet its financial covenants.

Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.

• Market Standards—Finance
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  Discover the newest Practical Guidance content and resources in  this update. This guide is designed to help you find the tools and insights you need to work more efficiently and effectively.
• Trump Transition Coverage in Practical Guidance
  The Trump Transition Resource Kit is a consolidated listing of guidance related to new actions and orders, and the Presidential Executive Actions Tracker is a frequently updated listing and description of many of the recently implemented presidential orders and rescissions of previous administration orders. 
• New! Practical Guidance Journal, 2025 Second Edition features guidance for regulating AI in the workplace in 2025, Intellectual Property issues related to deepfakes, the emergence of AI in mergers and acquisitions, and a checklist to help when evaluating AI technology risks.
• Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on cutting edge issues in the law: NFTs, Cannabis, COVID, and more.
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content.
• Browse the Practical Guidance Author Center to see the 2600+ leading attorney authors contributing to our 26 practice areas. Interested in becoming a Practical Guidance author? Click here for details. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.   
• Artificial Intelligence (AI) Provisions in Credit Agreements Tracker identifies provisions included in select publicly filed credit agreements addressing artificial intelligence (AI) since 2022.
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