Asset-Based Finance

(redirected from Asset Based Finance)

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 ?
The organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers' Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
Global Banking News-October 19, 2017--Citibank appoints senior VP for asset based finance
As the SME economy in Scotland continues to adapt, and businesses look to achieve their growth ambitions, products such as invoice discounting and asset based finance continue to become more popular."
The new body will take on many activities previously carried out by six industry bodies - the Asset Based Finance Association (ABFA), the British Bankers' Association (BBA), the Council of Mortgage Lenders (CML), Financial Fraud Action UK (FFA UK), Payments UK and the UK Cards Association.
Gareth had previously worked in the Bank's Asset Based Finance team from 2000 where he implemented a number of structured finance transactions on a range of assets, focusing on maritime assets, aircraft and rolling stock.
A study by the Asset Based Finance Association (ABFA) revealed that SMEs (small to medium sized enterprises) waited an average of 67 days to be paid last year, compared with 38 for larger firms.
A study by the Asset Based Finance Association (ABFA) revealed that SMEs waited an average of 67 days to be paid last year, compared with 38 for larger firms.
Recent figures from the Asset Based Finance Association underline the vital role of funding to SMEs, with the three months to July signifying the biggest ever quarter for asset based finance, with a record GBP 18.9bn of funding provided to businesses.
The Asset Based Finance Association (ABFA) has appointed Martin Morrin as chairman.
The Asset Based Finance Association said its members advanced PS17.4bn to firms in the third quarter of the year - a 6% rise.
Invoice finance has continued to grow in popularity for both SMEs and larger companies according to a new economic report and quarterly figures released today by the UK's Asset Based Finance Association (ABFA).
He has been involved in building asset and non asset based finance businesses as well as structured capital markets capability across North America, Asia, the Far East and Europe, encompassing all aspects of structured finance, credit and risk management.