Asset Based Lending
In the simplest meaning, asset-based lending is any kind of lending secured by an asset. More commonly however, the phrase is used to describe lending to business and large corporations using assets not normally used in other loans. Typically, these loans are tied to inventory, accounts receivable, machinery and equipment, but they can also include exotic things like the value of pharmacy script files, a trademark, or whole assets of intellectual property.
This type of lending is usually done when the normal routes of raising funds, such as the capital markets (selling bonds to investors) or normal unsecured or mortgage secured bank lending is not possible. This is usually because the company is in dire financial status. Thus, asset based lending can be compared to subprime lending.
Eastern Equipment Associates
2114 14th Street,
Hammonton, NJ 08037
Phone 609-704-2966 Fax 866-459-2295Contact Us