Asset-based borrowing permits small businesses:
a. to borrow up to 100% of the value of their inventory or their accounts receivable for the money they need for long-term goals. b. to use normally unproductive assets–accounts receivable and inventory. c. to obtain loans more easily but with less borrowing power than if they used an unsecured line of credit. d. access to a source of funds ideally suited for long-term financing needs.