The fundamentals of asset-based lending haven’t changed. After spending years working inside ABL teams, underwriting collateral, reviewing borrowing bases, and managing risk day to day, the mechanics are still familiar. What has changed is the volume of data, the number of parties involved, and the level of scrutiny applied after decisions are made. Three areas account for most of that shift.
1. More Automated Support in Credit and Collateral Review
Most credit teams are no longer reviewing the same number of borrowers they were five years ago, and they’re not doing it with larger staff. As a result, lenders are increasingly relying on automated tools to identify inconsistencies in borrower reporting, flag exceptions, and support recurring collateral reviews. These tools don’t replace credit judgment, but they reduce time spent reconciling numbers and allow teams to apply the same review standards across more accounts.
2. Exams Focus More on Process Than Outcomes
In recent exams, the emphasis has been less about whether a deal fits a checklist and more about whether the lender can explain how decisions were made. Examiners want to see how borrowing bases are reviewed, how exceptions are identified and resolved, and whether there’s a clear record of approvals and follow-ups. Judgment still matters, but it needs to be supported by consistent execution and documentation that holds up months or years later.
3. Collateral Structures Are Less Straightforward
More facilities now involve combinations of receivables, inventory, and outside capital, including private credit partners. These structures often come with tighter reporting requirements and less tolerance for data discrepancies. The challenge isn’t understanding the collateral, but keeping reporting consistent, timely, and traceable when more parties are involved and reporting cycles shorten.
None of this requires reinventing asset-based lending. It does require systems and processes that make it easier to review collateral, track exceptions, and document decisions consistently as portfolios grow and structures become more layered.
Stephen Reiners has worked in asset-based lending credit and underwriting for more than a decade.
