Why European Multi-National Corporations Use Asset Based Lending

For reasons that eventually become clearer as time goes by, it starts to become obvious that many players in the marketplace use the terminology of asset based lending to mean a lot of different things, sometimes masking true capabilities for marketing purposes. One of the industry trade association...

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Bibliographic Details
Published inThe Secured Lender Vol. 66; no. 1; p. 60
Main Author Moffitt, Graham
Format Trade Publication Article
LanguageEnglish
Published New York Secured Finance Network (SFNet) 01.01.2010
Subjects
Balance sheets
Banking
Collateral
Cross border transactions
Electronic data interchange
Funding
Insolvency
Inventory
Jargon
Multinational corporations
Secured lenders
Security interests
Third party
Europe
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Summary:For reasons that eventually become clearer as time goes by, it starts to become obvious that many players in the marketplace use the terminology of asset based lending to mean a lot of different things, sometimes masking true capabilities for marketing purposes. One of the industry trade associations based in Europe arguably adds to the confusion, as much of its membership solely provides funding against receivables -- yet the words "Asset Based" are prominently used in this organization's name. Large corporates are not just based in the UK or North America and, multinational businesses have operating entities in many jurisdictions. The asset based lender who simply tries to replicate what they have traditionally delivered in the UK or North America is asking for a lot of trouble unless it is clearly understood what challenges jurisdictions such as, France, Italy, Germany, Spain and the Netherlands bring and these are just the main Continental European territories.
ISSN:0888-255X