The assets most commonly used for security by asset-based lending companies are
A) land and buildings.
B) accounts receivable and inventory.
C) equipment and buildings.
D) inventory and equipment.

Question

Quizplus · Accepted Answer

Asset-based lending companies typically use accounts receivable and inventory as collateral for loans. Land and buildings may be used in some cases, but it is less common. Equipment and buildings may be used in certain industries, but inventory and accounts receivable are more universally accepted as collateral for this type of lending.

The Assets Most Commonly Used for Security by Asset-Based Lending