Asset-Based Credit

An asset-based credit is a short- to medium-term special loan for which manu­fac­tu­ring compa­nies, trad­ers and service provi­ders can use both their mova­ble fixed assets and their current assets as colla­te­ral. These assets are usually of little rele­vance to banks if the company’s credit­wort­hi­ness and cash flow do not meet the requi­re­ments. An asset-based credit offers inves­tors in corpo­rate tran­sac­tions the oppor­tu­nity to use their own machi­nery, equip­ment, invent­ories from finis­hed goods and merchan­dise warehou­ses, tangi­ble assets or real estate to finance the purchase price as well as those of the company to be purchased.