Asset-based financing


Also found in: Acronyms.

Asset-based financing

Methods of financing in which lenders and equity investors look principally to the cash flow from a particular asset or set of assets for a return on, and the return of, their financing.

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 ?
Most banks keep cash-flow financing and asset-based financing in separate silos.
These customers will benefit from Newcourt's proven ability to develop tailored asset-based financing options for this type of equipment.
The Foothill Group specializes in providing asset-based financing and asset management services.
Products and services include asset-based financing, cash flow lending and corporate restructuring.
She has extensive experience in asset-based financing, lending arrangements, restructuring of debt obligations, bond financing, joint ventures, syndications of loans, and limited partnerships.