Asset-based loans are a form of secured lending where businesses use their assets—such as accounts receivable, inventory, or equipment—as collateral. This financing option is ideal for businesses looking to free up capital tied up in inventory or unpaid invoices. By leveraging assets, businesses can access funds quickly, which can then be reinvested in operations or used to cover short-term expenses. Asset-based loans offer a fast, flexible solution to maintaining cash flow during growth phases or market downturns.
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