Decades ago, asset-based finance developed a nasty reputation. As a financing tool that requires business owners to place valuable assets — whether working capital or physical — up for collateral, asset-based financing (ABF) was often viewed as a solution to a dire problem when no other options were available.
"One of the histories of the asset-based loan was that it was a loan of last resort," said Norb Schmidt, executive vice president and director of capital finance at Cadence Business Finance. "From an asset-based perspective, borrowing had a stigma attached to it."
