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.
Mentioned in ?
References in periodicals archive ?
Asset-based financing is typically structured as a revolving line of credit and secured by a company's accounts receivable, inventory, equipment, and/or real estate.
Considering an asset-based loan? your lender can be a source of both funds and advice
He added that borrowers are also driven to asset-based financing structures because "they like the efficiency of the financing," and that there is little or no float at the end of each quarter.
ASSET-BASED FINANCING GAINS MORE BELIEVERS DURING TOUGH TIMES
Asset-based financing allows assets to be leveraged from within a target business, offering a highly flexible financing option that can provide the necessary capital required to complete the transaction.
Increase in alternative funding for MBOs; Tony Smedley, regional managing director for the Midlands at Cattles Invoice Finance, explores the finance options
RELATED ARTICLE: Why Consider Asset-Based Financing?
Seeking financing? consider asset-based loans: two bankers explain why, when the economy is down, asset-based lending is up. (Financing for Growth: Special Section)
From his perspective, he said he's seen a marked increase in the number of home furnishings companies turning to asset-based financing. HFN spoke to Lucas about the financial climate that is driving this trend.
TYCO EXECUTIVE SEES ECONOMY DRIVING ASSET-BASED FINANCING TREND
Factoring--a method of asset-based financing in which receivables are purchased or used as collateral--can provide immediate cash.
Need money fast? Convert accounts receivable to cash to finance your business
In 1992, he joined Gordon Brothers and founded GBFC a specialty commercial finance company focused on asset-based financing to retailers.
Crystal Financial CEO plans retirement
White Oak Asset Finance, GP (WOAF) provides asset-based financing solutions including invoice discounting, supply chain finance and inventory finance to small- and middle-market companies throughout the United States.
White Oak Asset Finance names managing director
Cattles Invoice Finance in Birmingham helped structure the deal as well as providing nearly pounds 1 million in asset-based financing.
MBO saves jobs at plastics moulder
In another case, a company obtained asset-based financing for the buyout of a $40-million distribution company and was able to reduce its loan by 40 percent within 10 months after the transaction by reducing inventory levels significantly below the historic precedent.
Making an LBO work, by learning the signals
Bibby Financial Services (BFS) is supporting Houston-based United Plastics Group (UPG) with an asset-based financing facility, the company said.
Bibby Financial Services supporting finance facility to United Plastics Group
'Bibby Financial Services is a leading finance company known for our superior customer service and ability to provide large factoring facilities and asset-based financing at competitive rates,' said Barry Kastner, Bibby Financial Services executive vice president.
Bibby Financial Services funds security services company

Financial browser ?
Full browser ?