What is the asset-based lending? Asset based lending is an approach that uses data on property sales and deals that are comparable or nearly comparable where property values are based on a comparison process. Generally, the property being valued (object assessment) compared to the comparable property transactions that have occurred as well as properties that are still in the stage of the sales offer a buying and selling process.
Comparative data obtained from sales data, bidding, listings, interviews with people, officials and property owners / other land, the various factors considered against comparable data among other things, the location, shape, size, specifications, physical condition, ease of achievement and the element of time. Against the above data analysis and benchmarking are held, in which of the differences between objects with comparative valuation adjustment. If the debtor is unable to pay its obligations then the collateral assets become a substitute for the lack of such loans. Values used are not using market value, but the Forced Sale Value / Value Liquidation. The definition of forced sale value is the amount of money that may be received from the sale of a property within a relatively short period of time in which the seller had to sell the property and the buyer has no obligation to purchase.
In the wider interests, the guarantees must be liquidated by operation of law, may continue to be sold directly or by auction. For the purposes of sale of assets (asset disposal), the market is generally more frequent use of the base value with the Forced Sale Value (liquidation value), because the behavior of the sale of an asset at a certain time limit and sometimes buyers and sellers are forced to stand in position.
