Asset-based finance can reduce risk
Ben Ensminger-Law addresses where asset-based finance genuinely reduces risk versus simply repackaging it at scale. He identifies four key conditions for real risk mitigation: bounded and predictable cash flows, essentiality of the financed asset, practical legal enforceability including true sale and jurisdictional certainty, and leverage scaled to actual cash flows rather than refinancing expectations. He also notes the breadth of assets financeable under ABF beyond digital infrastructure.