SS&C Blog

BLOGS. June 21, 2024

Mitigate the Risk of Asset-Based Lending with Detailed Asset Tracking

Lenders have been showing an increased interest in asset-based lending as a way to weather economic uncertainty, rising interest rates, supply chain challenges and tightening credit markets. The arrangement allows for more flexibility in making future decisions not always available with other types of loans and for accessing additional borrowing power, making it suitable for a wide range of situations. As rising interest rates have made traditional bank loans more expensive, asset-based lending allows companies to unlock the value of their assets and provide an effective way to enhance liquidity. However, keeping track of these assets can be a challenge for lenders. From collateral valuation and operational risk to market and regulatory risk, lenders can mitigate these risks with the correct tools and strategies.