967,723,663 visitors served.
967,723,663 visitors served. |
|
 Dictionary/ thesaurus |  Medical dictionary |  Legal dictionary |  Financial dictionary |  Acronyms |  Idioms |  Encyclopedia |  Wikipedia encyclopedia | ? |
Asset-Based Lending |
Also found in: Wikipedia | 0.01 sec. |
|
Asset-Based Lending A business loan secured by collateral (assets). The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets. Also known as "commercial finance" or "asset-based financing". Notes: This type of loan is often used to meet various cash flow needs of companies, for example, meeting payroll or building inventory.Interest rates on these loans, as you can imagine, are less than interest rates on an unsecured loan or line of credit because if the borrower defaults the lender has the ability to seize assets and attempt to recoup their lending costs. |
|
? Mentioned in | ? References in periodicals archive | |
|---|---|---|
Surprisingly, most of us are not aware of options like accounts receivable financing, cash advances, private-money and hard-money lenders, asset-based lending, equipment sale-leasebacks, and unsecured loans. The key aspects of the proposal were: (1) to raise the small-bank asset threshold from $250 million to $500 million thereby allowing more banks to benefit from streamlined CRA evaluations; and (2) to allow examiners to reduce a depository institution's CRA rating if the institution engaged in a pattern or practice of abusive asset-based lending. Back in 1994, when Bank of America purchased Continental Bank, Continental's asset-based lending unit disappeared. |
 |
| Free Tools: |
For surfers:
Browser extension |
Word of the Day |
Help
For webmasters: Free content NEW! | Linking | Lookup box | Double-click lookup | Partner with us |
|
|---|
Disclaimer |
Privacy policy |
Feedback | Copyright © 2008 Farlex, Inc.
Printer friendly
Cite / link
Email
Feedback
Add definition
Asset-Based Lending
