Asset-based funding is where the funding outlaid to a third-party is secured by an asset. For example, Capital Corp Merchant Banking would disburse funding to a group and secures an asset with a mortgage till the funding is paid in full. Should the company default on its obligations during funding then the asset would be foreclosed. Asset-based lending is commonly offered by a variety of sources, from banks to investment groups. There would, of course, be difference in the

Capital Corp Merchant Banking previously issued a post highlighting a “hard money” loan. The primary difference between that type of financing and the topic of this post, that of a a swing loan, is the timing aspect. In this instance, a “hard money” loan is for a real estate asset with a clear path forward while a swing loan (or bridge financing) is for property in a type of transition. In common understanding that type of loan is for a normally short period until an addit