Financing primarily secured by business assets like receivables, inventory, or equipment.
For example, a manufacturing company with $500,000 in receivables and $200,000 in inventory qualifies for a $420,000 asset-based credit facility — 80% of eligible invoices plus 30% of inventory value — to fund its operations.
Why it matters: It allows businesses with strong balance sheets but weak cash flow to unlock working capital using their existing assets as collateral.
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