This would involve a financial institution taking receivables and movable properties that were closely tied to the firm’s business cash flow (e.g., accounts receivable and goods in stock) as collateral for a loan.
On this issue, the Bank of Japan has been providing funds to financial institutions that undertake ABL in order to promote lending without depending on real estate as collateral, as will be pointed out later. Presence of mild deflation Japan has been facing mild deflation over almost the entire period since the second half of the 1990s (Chart 16).