Asset-Based Finance

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Asset-Based Finance

The practice of making a loan secured by an asset. While, in theory, many loans are asset-based mortgages, the term most commonly applies to loans secured by something unusual, such as accounts receivable or intellectual property. Businesses take out most asset-based loans and pledge something used in the conduct of their businesses as collateral, such as inventory. As with all secured loans, asset-based loans have lower interest rates than unsecured loans. The practice is also called asset-based lending.
References in periodicals archive ?
A LACK of understanding of alternative forms of borrowing, such as asset based finance, could be hampering business growth in Yorkshire and the North East, according to new research.
Despite testing business conditions, the latest quarterly figures for the three month period April to June from the Asset Based Finance Association (ABFA) show that the number of companies in the UK and Ireland using asset based finance continues to rise.
The group, Asset Based Finance Associates, currently has more than 40 members and is applying for charity status in the next few weeks.
The latest quarterly figures released by the Asset Based Finance Association (ABFA) show that lending to businesses is growing, with total advances from ABFA members at [pounds sterling]14.
Though asset based finance is not new, many are likely to ponder whether they should go down the route.
Bank Asset Based Finance announced its role as administrative agent, joint leader arranger and joint bookrunner for the $265 million revolving credit facility to finance the acquisition of Animal Health International, Inc.
Asset based finance is increasingly forming part of the discussions that we regularly have with our clients, advisers and the professional services community.
Bank Asset Based Finance, a leader in asset based finance nationwide, and Aurora Resurgence, an affiliate of Aurora Capital Group, a Los Angeles-based private equity firm with more than $2 billion of assets under management, today announced the successful refinancing of New Star Metals Inc.
Thi* will come as no surprise to * those who know the industry *ell as asset based finance has historically held up well during times of economic distress.
Bank Asset Based Finance has closed a $350 million senior credit facility with O'Neal Steel, the nation's largest family-owned, full-line metal service center based in Birmingham, Alabama.
However, with the asset based finance industry continuing to grow and fund during 2012 there is a major alternative to traditional loans or overdraft facilities for firms looking for funding.
the establishment of a revolving working capital credit facility of up to $20 million with Royal Bank Asset Based Finance, a division of Royal Bank of Canada ("Royal Bank" or the "Bank").