The Ins and Outs of Asset-Based Loans

Simply put, asset-based loans are based on assets, generally accounts receivable and inventory, that are used as collateral. You’re putting your future revenue on the line to gain access to money right now.

Asset-based lenders will advance funds based on an agreed percentage of the secured assets’ value. The percentage is generally 70 percent to 80 percent of eligible receivables and 50 percent of finished inventory.

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