• Hajar Jouglaf

In a broad sense, most loans can be divided into two basic types: an asset-based loan (ABL) and a cash flow loan. An ABL is made by a lender who underwrites the loan primarily by valuing the company’s assets, such as accounts receivable (A/R) and inventory. An ABL lender underwrites a loan based on the ability to liquidate its collateral should it need to. A “cash flow” lender, in contrast, while also secured against the borrower’s assets, underwrites the loan primarily based on...
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