Asset-based lending is:
A)based on an underlying asset that serves as collateral in the event of default
B)financing that is tied directly to a particular asset
C)a and b
D)none of the above

Question

Quizplus · Accepted Answer

Asset-based lending is a type of financing that is based on an underlying asset that serves as collateral in the event of default. This collateral can be a specific asset, such as inventory or accounts receivable, and the financing is tied directly to that asset. Therefore, both option a and b are correct.

Asset-Based Lending Is