Asset-Based Lending is a type of financing where a borrower secures a loan using their assets as collateral. These assets can include inventory, accounts receivable, or equipment. This method allows businesses to access funds based on the value of their assets, making it easier for them to obtain financing, especially if they have limited credit history. Lenders assess the value of the assets to determine the loan amount. If the borrower defaults, the lender can seize the assets to recover their losses. This approach is often used by companies looking for flexible financing options to support growth or manage cash flow.