Multiple middle-market lenders have been gravitating to asset-based loans (ABLs), allowing them to expand their loan offerings. Competition for making ABLs is high, which has caused interest rates on those loans to stay low and led traditional banks focus on lending to companies with good credit. But companies that lack perfect credit scores stil need ABLs.

This, according to a quarterly report from investment bank Morgan Joseph TriArtisan LLC, opens the door for non-bank ABL lenders to charge more to lend to companies with not-so-great credit.

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