Asset-Based Finance (ABF)

Financing where repayment is primarily sourced from cash flows generated by a specific pool of financial or real assets, rather than from the general operating cash flows of the borrower. Broader than ABS: includes private bilateral loans, warehouse facilities, forward-flow agreements, SRT structures, and publicly issued securities.

Warehouse Facility

A revolving credit facility that funds asset origination before the assets are securitised or sold; the warehouse lender holds a first-priority lien on the asset pool. A temporary funding mechanism — not a permanent funding structure.

True Sale

A transfer of assets constituting a legal sale (not a secured loan) so that the assets are excluded from the originator's insolvency estate. Requires: (1) intent of parties; (2) no obligation to repurchase at par; (3) no practical control retained; (4) supported by a true sale legal opinion. See also: VIE/ASC 810 for US GAAP consolidation consequences.