A business loan where the borrower pledges as collateral for the loan any assets used in the conduct of his or her business. Funds are used for business related expenses. All asset-based loans are secured.
A firm that will lend money on the strength of the assets of a company's balance sheet, that is, debtors, stock, plant and machinery and property. The firm will take a debenture to secure their lending position.
Encompasses funding against debtors in the form of factoring or invoice discounting, and can incorporate an element of funding against stock, property, existing plant and machinery. Also includes hire purchase and leasing products to fund assets in the form of new plant, equipment and vehicles. Can be extended to cover the funding of payroll specifically for recruitment agencies.
Lending against specific assets of borrower, i.e. accounts receivable, inventory, equipment, etc. which becomes collateral for the loan.
An advance against a mixture of business assets; debtors, stock, plant and machinery, land and buildings
A form of lending where the factor uses collateral, such as equipment or inventory, as security against the loan.