When a company needs a loan, lenders typically consider the company's credit history and ability to repay. Asset-based lending is a bit different. Here, the lender is particularly interested in the value of the company's assets. They might be more willing to lend money if the company has valuable assets, like real estate or equipment, that could be used to repay the loan if necessary. This can be a good option for companies that are new or have a shaky credit history.
