Nonbank sources of debt financing could be based on:
A)asset-based lenders.
B)inventory financing.
C)Both A and B
D)None of the above

Question

Quizplus · Accepted Answer

Asset-based lenders provide financing based on the value of the borrower's assets rather than creditworthiness, making it a viable option for businesses with low credit scores. Inventory financing provides a loan based on the inventory that the business has stored in its warehouse or storage facility, which can be used to ensure cash flow or grow the business. Both asset-based lenders and inventory financing are nonbank sources of debt financing.

Nonbank Sources of Debt Financing Could Be Based On