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 ?
Mike Ehlert has been given the role of MD, Asset-Based Lending, BMO Harris Bank and is to be responsible for managing BMO Harris Bank's Asset-Based Lending business throughout Texas and the surrounding region.
Schuldiner and will add a suite of new offerings to complement the 78-year-old firm's factoring and asset-based lending business divisions.
BMO also said that it has added Mike Ehlert, who has joined as managing director, Asset-Based Lending, BMO Harris Bank, responsible for Asset-Based Lending business throughout Texas and the surrounding region.
Wells Fargo & Company (NYSE:WFC) disclosed on Friday that David Marks takes over as head of Wells Fargo Capital Finance, the bank's asset-based lending unit.
In his new role, Millar will be responsible for delivering growth in large ticket factoring and asset-based lending through expanding the Canadian client portfolio.
5 June 2014 -- Indianapolis US-based First Internet Bank of Indiana said that Daniel E Burd has joined the bank as managing director of its asset-based lending line of business.
Sterling will acquire client relationships with over USD330m in loans outstanding as of March 31, 2016, doubling its existing asset-based lending loan portfolio.
8 January 2014 -- Utah US-based Celtic Bank said that Michael Caron has been hired as vice president of business development in the asset-based lending group at Celtic Bank.
Bibby Financial Services has said that it has appointed Sam Cirelli as senior vice president, Business Development, to develop new business for the company's asset-based lending offering.
8 November 2013 -- New York-based bank holding company Hudson Valley Holding Corp's (NYSE: HVB) Hudson Valley Bank subsidiary the operating subsidiary said it has launched an asset-based lending group.
Bibby Financial Services, a company involved in asset-based lending and factoring, has announced the appointment of Feon Phillips as analytics and data management officer.
7 November 2013 -- Indianapolis USA-based online retail and business banking services provider First Internet Bank of Indiana (NASDAQ: INBK) said it has expanded its commercial lending capabilities through an asset-based lending line of business.