To generate working capital or to usually meet specific short-term cash needs, businesses use certain short-term assets as collateral for commercial loans. The most common types of asset-based financing are the following: Accounts receivable (debtor) financing uses the receivables as collateral. As the business collects the receivables, the proceeds are used to repay the loan or line of credit. Inventory financing (stock financing) is a similar type of loan, using inventory as collateral. Factoring is a process whereby accounts receivable are actually sold to a third party (the factor) for a discount price, after which the factor takes on the job of collections.

Asset Based Financing is offered by these branches: Illinois, Florida, England