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 ?
Global Banking News-October 19, 2017--Citibank appoints senior VP for asset based finance
Finding finance Over recent years, independent funders have expanded product portfolios to meet the varying demands of their customers and - encouragingly - there has been an increase in the number of SMEs using asset based finance to unlock value in their businesses.
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.
BANKING AND CREDIT NEWS-August 10, 2011--US Bank Asset Based Finance arranges USD265m financing to Lextron(C)2011 M2 COMMUNICATIONS http://www.
M2 EQUITYBITES-August 10, 2011--US Bank Asset Based Finance arranges USD265m financing to Lextron(C)2011 M2 COMMUNICATIONS http://www.
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.
Ward has joined the bank's Asset Based Finance (ABF) team located in Los Angeles, CA.
Asset based finance is increasingly forming part of the discussions that we regularly have with our clients, advisers and the professional services community.