Summary

• ABF is relatively short-term private financing that is secured by a diverse range of financial and hard assets that typically generate contractual cash flows.
• ABF's defensive qualities stem from both how assets are selected and how deals are structured.
• Embedded in the daily operations of thousands of small businesses across the U.S., from dental offices and accounting firms to restaurants and retail stores, this originator has built a payment processing platform whose reach is also one of its most valuable underwriting assets.

By Jackie Regan

An introductory guide to asset-based finance and its growing role in diversified income portfolios

Asset-based finance (ABF), also known as specialty finance or asset-based credit, has grown rapidly over the past decade to a