Asset finance: Difference between revisions
imported>Doug Williamson (Create the page. Source: Finance and Leasing Association home page: http://www.fla.org.uk/asset) |
imported>John Grout (To expand the stub a little) |
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A source of funding which is secured, or effectively secured, against assets. | A source of funding which is secured, or effectively secured, against assets. | ||
The security | The funding can be provided in several ways. Financing may be for example, by way of a secured loan - the security usually being taken over the asset being financed. It may be by leasing, the asset being owned by the lessor and made available for use to the lessee who may have an option to purchase the asset at the end of the lease. A pool of smaller assets - for example motor vehicles or construction plant - may also be financed in these ways. | ||
From the borrowers point of view there is great similarity in effect to [[asset based finance]] (ABF) or, from the finance provider's point of view, asset based lending (ABL) - sometimes rendered as asset-based finance and asset-based lending. | |||
The discussion in the entry on [[Asset based finance]] on the impact on other creditors is relevant here and important to the "borrower". | |||
''Note'' It is common for lenders and borrowers to use different terms (e.g. "lending" and "borrowing") to describe the same transaction from their point of view. Do not be confused by this - though it does make indexing and searching, for example in this Wiki, a little more difficult. | |||
== See also == | == See also == | ||
*[[Lease]] | * [[Asset based finance]] | ||
*[[Project finance]] | * [[Lease]] | ||
* [[Project finance]] | |||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Revision as of 12:49, 18 February 2015
A source of funding which is secured, or effectively secured, against assets.
The funding can be provided in several ways. Financing may be for example, by way of a secured loan - the security usually being taken over the asset being financed. It may be by leasing, the asset being owned by the lessor and made available for use to the lessee who may have an option to purchase the asset at the end of the lease. A pool of smaller assets - for example motor vehicles or construction plant - may also be financed in these ways.
From the borrowers point of view there is great similarity in effect to asset based finance (ABF) or, from the finance provider's point of view, asset based lending (ABL) - sometimes rendered as asset-based finance and asset-based lending.
The discussion in the entry on Asset based finance on the impact on other creditors is relevant here and important to the "borrower".
Note It is common for lenders and borrowers to use different terms (e.g. "lending" and "borrowing") to describe the same transaction from their point of view. Do not be confused by this - though it does make indexing and searching, for example in this Wiki, a little more difficult.
