After being secured with assets on a company’s balance sheet, money are given. Accounts receivable, commercial real estate, equipment, or other company assets may be used as collateral for such asset-based loans. Term loans and lines of credit are the two standard forms of asset-based lending, although they are also offered in various forms like factoring, merchant cash advances, and ACH finance. The sale of future earnings in exchange for an up-front cash payment is what factoring, cash advances, and ACH and MCA financing are instead of actual loans. There are numerous asset-based lenders with various leverage requirements and collateral standards. While some asset-based lenders prefer to fund using a ratio of hard assets, others prefer to lend against a company’s accounts receivables.