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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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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
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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.
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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.
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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.
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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

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