In the context of small businesses, which of the following is true of asset-based financing?

Question

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Asset-based financing involves accepting a company's assets as collateral in exchange for a loan. This can include inventory, accounts receivable, equipment, or other assets. The most liquid asset of a service company may not necessarily be inventory, as they may not have much physical inventory to begin with. Asset-based financing is not necessarily a form of debt security with a standard denomination and method of interest payment.

In the Context of Small Businesses, Which of the Following