What is asset based lending?

Asset-based lending is the business of loaning money in an agreement that is secured by collateral. An asset-based loan or line of credit may be secured by inventory, accounts receivable, equipment, or other property owned by the borrower. The asset-based lending industry serves business, not consumers. It is also known as asset-based financing.

What is the difference between asset based loans and hard money loans?

The main difference between asset-based loans and hard money loans is that hard money loans are almost always secured by real estate. Asset-based loans, on the other hand, tend to use more liquid collateral, such as accounts receivables. Hard money loans, however, are a form of asset-based lending.

How does asset-based lending work?

With asset-based lending, the lender focuses largely on the value of your collateral when evaluating your loan application. If you have strong assets to offer, you may still be able to access financing even if you have unstable cash flow or a rocky credit history. Competitive interest rates.