Even companies whose financial statements are too weak to produce other types of loans can get asset-based loans.

Question

Quizplus · Accepted Answer

Asset-based loans are different from traditional loans in that they are secured by the borrower's assets. This means that companies with weaker financial statements can still qualify for asset-based loans because the lender is primarily concerned with the value and liquidity of the borrower's assets.

Even Companies Whose Financial Statements Are Too Weak to Produce