Asset-Based Lending

"Asset-based lending" is a fancy way to describe a loan that is backed by some kind of collateral. "Collateral" is a fancy way of describing the stuff you promise to give to a lender if you don't pay back a loan. And if you think "loan" is a fancy word, we have some real estate in Florida we'd like to talk to you about.
Typically, the term "asset-based lending" applies to businesses, though technically something like a home mortgage would represent asset-based lending as well. You have borrowed money to buy a home. If you don't pay the money back, the bank has the right to take the home and resell it in order to recoup their investment. Mortgages very specifically relate to property, but the concept applies to the overall category of asset-based lending.
Companies can use other assets besides property to secure a loan. They might use things like product inventory or customer receivables. The key point is that the lending agreement includes some asset put up as collateral in order to secure the loan.