Factoring
Leasing
Floor plan loan
It anticipates the cashflow of commercial receivables
It targets the funding of capital assets, such as real estate and equipment
It targets inventories, using portions of them as collateral
It requires assessing the borrowers' creditworthiness
It involves an interest rate charge
The lender faces a market risk on the collateral
It funds short term cashflow gaps
It can be offered by a bank
It can be offered by a non-bank financial institution