Examlex
Differentiate the given function.
Asset-Based Lending
A type of financing where loans are given based on the value of an individual's or company's assets.
Loan Collateral
Assets or property pledged by a borrower to secure a loan, serving as a guarantee for the lender that the loan will be repaid.
Liquidation Value
The estimated total value of a company's physical assets if it were to be terminated and the assets sold, typically assessed in the context of a business facing bankruptcy.
Diversify Risk
The strategy of spreading investments across various sectors or assets to reduce the overall risk exposure.
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