Asset-Based Lending
/ˈæsɛt beɪst ˈlɛndɪŋ/
Definitions
- (n.) A financing arrangement in which a loan is secured by the borrower's assets, such as inventory, receivables, or equipment, rather than by creditworthiness alone.
The company obtained asset-based lending to improve its cash flow while leveraging its inventory as collateral.
Forms
- asset-based lending
Related terms
See also
Commentary
Asset-based lending typically involves ongoing monitoring of collateral value and is often used by borrowers with substantial physical or financial assets.
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.