Asset based loans:
A) are not generally tied to inventory.
B) include loans to finance leveraged buyouts.
C) put more weight on cash flow than collateral when evaluating the loan.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Asset-based loans are loans that are secured by the assets of the borrower. This type of loan is often used to finance leveraged buyouts, which are transactions in which a company is acquired using a large amount of debt. Asset-based loans are typically evaluated based on the collateral that is pledged to secure the loan, rather than on the cash flow of the borrower.

Asset Based Loans