Asset Based Lending Facts
When you think of Asset-Based Lending the key word that stands out the most is “asset”. In order to receive an Asset Based Loan, the borrower must have assets to give the lender as collateral. Assets that are eligible for Asset Based Loans may come in the form of fixed or permanent assets as illustrated below:
- Accounts Receivable
Another term that Asset-Based Lending could be referred to is Secured Lending. With Asset-Based Lending being one of the most common forms of lending in the market; it is highly important that people understand what Asset-Based Lending is and what it consists of. Once you are qualified for an Asset-Based Loan; there are various ways to use the loan to advance your company. These various ways include providing working capital, debt refinancing and merger finance.