Asset-Based Lending: What Is It?

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Asset-Based Lending Definition
How Asset-Based Lending Works
Borrowers can get an unsecured personal loan with no collateral
Expecting mothers can use personal loans as a maternity leave loan
Borrowers may have few restrictions on how to use a personal loan
Example of Asset-Based Lending
Asset-Based Lending Cons
Last Resort Loan
High Price
High Maintenance
How Can You Benefit From Asset-Based Lending?
Asset-Based Lending Alternatives
Credit Card
Cash
Unsecured Personal Loan
The Takeaway
Frequently Asked Questions
Photo credit: iStock/Ridofranz
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About the Author
Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and currently serves as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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