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By Xavier guzman, Partner, Berta Blasco Lázaro and Yann Zellet, both Senior Associates, DLA Piper Luxembourg
With the current financing and economic backdrop, the attraction of (and the need for) asset-based lending is increasing.
Here’s why:
- It offers businesses the means to leverage their assets to secure the capital they need to sustain their operations and meet financial commitments.
- Unsecured loans or lines of credit are becoming harder to obtain as banks tend to be more risk averse these days. Credit providers are looking to get tangible collateral to protect them in case the borrower defaults. Nowadays lenders tend to scrutinise the quality and liquidity of the assets provided as collateral to determine the terms of...
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