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Does asset-based borrowing add new cash to a business?

April 26, 2017asset-based Borrowing Business cash

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Does asset-based borrowing add new cash to a business?

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Answer – A revolver accelerates cash flow by enabling a business to borrow against the future value of receivables and/or inventory that are expected to become cash in the near term. This acceleration of cash provides liquidity and allows the borrower to extend and optimize its equity base.