What is Asset-Based Lending or an “Asset-Based” Loan?
An “Asset-Based” loan or “Asset-Based Lending” is a secured business loan in which the borrower pledges as collateral any assets used in his or her business. It is also called commercial financing or asset-based financing. Accounts Receivable Financing is a form of asset-based lending. Gateway is an asset-based lender that specializes in accounts receivable lines of credit and we provide hundreds of companies with commercial financing. Rather than impose restrictive covenants, conditions, and other limitations relating to our borrower’s businesses, Gateway looks primarily at the quality of the businesses’ assets, primarily the accounts receivables, along with other assets, as collateral for these business loans. If a business has a slow season, or a temporary downturn for whatever reason, or has new management, or has less than 3 years of sustained profits, then many banks will take some form of negative action against the business. Gateway does not, since its primary focus is the qual
