asset-based financing
/æsɛt.beɪsɪd faɪnænsɪŋ/ · as.set.base.fin.an.cing
noun
- A financial arrangement where a business uses its assets as collateral to secure funding or loans. The company's asset-based financing allowed it to expand its operations without taking on excessive debt.
- A type of financing that focuses on the value of a company's assets rather than its creditworthiness or cash flow. The asset-based financing model is often used by small businesses or startups that lack a strong credit history.
Synonyms
Antonyms
Did you know? Asset-based financing is often used by businesses in industries with high asset values, such as manufacturing, construction, or transportation.