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An asset-based loan (also sometimes called “asset-based financing” or “commercial finance”) is a type of business financing secured by an asset (or multiple assets) of the company. Often, these loans are structured to function like revolving lines of credit, allowing the company to borrow from its asset(s) as needed on an ongoing basis to cover investments or expenses. Often, the assets used in asset-based lending are accounts receivable, equipment, real estate and/or inventory.