Irwin has applied for a loan from an asset-based lending company. As security, he will offer
A) land and buildings.
B) accounts receivable and inventory.
C) equipment and buildings.
D) inventory and equipment.

Question

Quizplus · Accepted Answer

Asset-based lending typically involves using accounts receivable and inventory as collateral for the loan. While land and buildings, equipment, and inventory alone can all be used as collateral in certain situations, the combination of accounts receivable and inventory is the most common security for asset-based lending companies.

Irwin Has Applied for a Loan from an Asset-Based Lending