Asset-Backed Financing
/ˈæsɛt-bækt ˈfaɪnænsɪŋ/
Definitions
- (n.) A form of financing secured by a company's assets, where debt is backed by collateral such as receivables, inventory, or other financial assets.
The company arranged asset-backed financing to improve its cash flow without issuing new equity.
Forms
- asset-backed financing
- asset-backed financings
Related terms
See also
Commentary
Asset-backed financing is distinct from unsecured loans due to the collateral component; precise asset identification and valuation are crucial in drafting related agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.