Asset-based financing is a flexible funding solution that enables businesses to unlock working capital by using their assets - such as inventory, accounts receivable, equipment, or real estate - as collateral. This approach helps companies manage cash flow, drive growth, and finance operations even if they don't meet traditional loan criteria. Loan amounts are determined by the value and liquidity of the assets provided, offering businesses the advantage of accessing capital aligned with their asset base.
This type of financing allows businesses, especially small to mid-sized businesses or asset rich companies, to access funds by using their tangible or intangible assets as collateral rather than relying primarily on creditworthiness or cash flow.