1. The Bank of America offers asset-based loans, which are .......... by a company's accounts receivable, inventory, equipment, and/or real estate.

2. Asset-based loans are an alternative to traditional bank lending because they serve borrowers with risk characteristics typically outside a bank's .......... level.

3. A bank will look first to the cash .......... for the repayment of a loan, then to collateral, while an asset-based lender looks to collateral first.

4. Banks typically require less collateral controls and monitoring but more financial ..........

5. .......... financing is often used by under-performing businesses that are not achieving their full potential; it is sometimes used for businesses that are either insolvent or on their way to becoming insolvent.

6. Debtor-in-possession (DIP) refers to a company that has filed for .......... under Chapter XI of the Federal Bankruptcy Code and has been permitted by the bankruptcy court to continue its operations to effect a formal reorganization. protection provisions penury prosecution

7. In a leveraged buyout (LBO), the target company's assets are used as collateral for debt, and its cash flow is used to .......... debt accrued by the buyer to acquire the company.

8. A Leveraged ESOP (Employee Stock Ownership Plan) allows a company to raise its capital-to-asset .......... by issuing new shares of stock to an employee trust, which finances the transaction with an asset-based loan.

9. A typical loan agreement with an asset-based lender provides protections, rights, and .......... for both parties.

10. The level of controls and monitoring by the asset-based lender is directly related to the credit .......... of the borrower.