In a nutshell, asset-based lending is a form of debt financing. (We know “debt” can sound like a scary word but keep reading.) It allows you to secure a loan based on the market value of your business assets. We’ll go into this in further detail below, but you should know upfront why this is an ideal type of loan: With asset-based lending, you can borrow up to 90% of accounts receivable, 60% of inventory, and 40% of intellectual property. You are also borrowing in the form of a credit line, which is even more ideal, because you can use those funds whenever you need money. Nothing more. Since your assets are your collateral, there is maximum liquidity and few covenants for you to fear of possibly breaking. All in all, this is an extremely flexible solution that bridges the buy-and-sell in your business so you can accelerate your sales cycle. As your assets grow, your line can also grow.