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Do borrowers need to be profitable to qualify for asset-based lending?

April 26, 2017asset-based borrowers lending profitable qualify

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Do borrowers need to be profitable to qualify for asset-based lending?

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Answer – An important aspect of asset-based lending is that prospective borrowers do not have to be profitable or have a minimum net worth. A business with tangible assets and qualified management can use its assets to create additional working capital to help carry out its business plans.