Asset-based Loans

The Bank of America offers asset-based loans, which are ..... by a company's accounts receivable, inventory, equipment, and/or real estate.

Asset-based loans are an alternative to traditional bank lending because they serve borrowers with risk characteristics typically outside a bank's ..... level.

A bank will look first to the cash ..... for the repayment of a loan, then to collateral, while an asset-based lender looks to collateral first.

Banks typically require less collateral controls and monitoring but more financial ......

..... financing is often used by under-performing businesses that are not achieving their full potential; it is sometimes used for businesses that are either insolvent or on their way to becoming insolvent.

Debtor-in-possession (DIP) refers to a company that has filed for ..... under Chapter XI of the Federal Bankruptcy Code and has been permitted by the bankruptcy court to continue its operations to effect a formal reorganization. protection provisions penury prosecution

In a leveraged buyout (LBO), the target company's assets are used as collateral for debt, and its cash flow is used to ..... debt accrued by the buyer to acquire the company.

A Leveraged ESOP (Employee Stock Ownership Plan) allows a company to raise its capital-to-asset ..... by issuing new shares of stock to an employee trust, which finances the transaction with an asset-based loan.

A typical loan agreement with an asset-based lender provides protections, rights, and ..... for both parties.

The level of controls and monitoring by the asset-based lender is directly related to the credit ..... of the borrower.