BizTerm Definition
Asset-Based Lending
Full Definition

Business loan where the borrower pledges collateral for a loan. Asset-based lending is called commercial finance. Funds are used to build inventories, cover seasonal expenses, take advantage of trade discounts, meet payrolls, and solve other cash flow problems. Asset-based loans are secured. Most lenders concentrate on loans of $250,000 and higher.

Previous Biz Term Next Biz Term