Asset based lending Definition
In the simplest meaning, asset based lending, refers to any kind of lending secured by an asset. This means, if the loan is not repayed, the asset is taken. In this sense, a mortgage is an example of an asset backed loan. More commonly however, the phrase is used to describe lending to business and large corporations using assets not normally used in other loans. These can include exotic things like lending against the value of a trademark or whole assets of intellectual property.