asset financing

asset financing definition - finance
A financing method available to businesses in which lenders look at the cash flow from a particular asset and base a loan on the assetÂ’s expected rate of return. The asset secures the loan. Most common forms of asset financing are loans made against account receivables and inventory. Second mortgages also are frequent sources of asset financing.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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