PT  - JOURNAL ARTICLE
AU  - Gail Bernstein
TI  - Viewing Assets More Expansively Can Benefit Borrower and Lender Alike
AID  - 10.3905/jpe.2006.628339
DP  - 2006 Feb 28
TA  - The Journal of Private Equity
PG  - 94--96
VI  - 9
IP  - 2
4099  - https://pm-research.com/content/9/2/94.short
4100  - https://pm-research.com/content/9/2/94.full
AB  - Traditionally, asset-based lenders would lend only against physical assets that could be easily appraised and quickly liquidated. In recent years, however, some asset-based lenders have begun viewing assets in a more expansive way. Today, these lenders often will lend against intangible assets such as intellectual property and customer lists as well as hard assets. The result has been good both for companies in turnaround situations and for the institutional lenders that advance funds against collateral. The bottom line is that companies have greater borrowing power than before and yet lenders remain protected against the risk of loss.TOPICS: Private equity, other real assets, risk management