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LSDefine

Simple English definitions for legal terms

asset-based financing

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A quick definition of asset-based financing:

Asset-based financing is a way of borrowing money where lenders and investors look at the cash flow from a specific asset to repay the loan. This means that the borrower uses an asset, like a car or a building, as collateral for the loan. If the borrower can't repay the loan, the lender can take the asset. Asset-based financing is often used for big projects like power plants or mines.

A more thorough explanation:

Asset-based financing is a type of lending where lenders and investors rely on the cash flow generated by a specific asset to repay the loan. This method of financing is often used when traditional financing options, such as bank loans, are not available or sufficient.

  • Floor-plan financing: A car dealer may obtain a loan from a manufacturer to purchase inventory. The loan is secured by the merchandise, and as the cars are sold, the loan is paid off.
  • Project financing: A power plant may require a large amount of funding to be built. The lender provides the funds, and the plant's output (such as electricity) is used to repay the loan.

These examples illustrate how asset-based financing works. In floor-plan financing, the loan is secured by the inventory, and as the cars are sold, the loan is repaid. In project financing, the lender relies on the revenue generated by the power plant to repay the loan.

asset-backed security | asset-coverage test

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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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