Borrowers benefit from asset-based loans in a variety of ways. Asset-based lending provides immediate and ongoing cash flow liquidity for a company’s working capital. While a bank’s lending process may be lengthy and cumbersome—taking up to several months in some cases as the bank analyzes the borrower’s financial statements, credit history, and generally the entire business—asset-based lending requires comparatively less time to conduct the transaction. Further, because asset-based lending loans are based on collateral, lenders are often willing to be much more flexible and work with a borrower during a turnaround or transition period. Since asset-based loans emphasize the quality of the collateral, fewer financial covenants are required of the borrower. Asset-based lending lenders typically require a much more limited degree of reporting back to the lender as compared with traditional bank lending.