Submitted by attractcapital • October 12, 2018
www.attractcapital.com
Asset-based lending depends on using assets, such as inventory and accounts receivable, as collateral to receive funding. In simple terms, a company takes a loan against the collateral value of its hard assets. Asset based lenders use advance rates against the collateral value of the assets to make the loan. The advance rate is usually 80% for receivables and 45% for inventory.
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