What type of lending involves securing a loan against the value of a borrower's assets rather than their income?

Asset-based lending refers to a type of financing where loans are secured by collateral, specifically the value of the borrower's assets, such as real estate, equipment, or inventory. In this scenario, lenders assess the value of these assets rather than focusing primarily on the borrower's income or creditworthiness. This approach allows borrowers who may not have a strong income history to obtain loans based on the tangible value of what they own.

In contrast, the other types of lending mentioned, such as income-based lending, evaluate a borrower’s financial capability primarily through their income and credit history, while equity lending relates to loans against the equity in property but doesn't fully represent the same secure nature of various asset valuations as seen in asset-based lending. Similarly, debt-to-income lending assesses how much debt a borrower has relative to their income, which does not align with the principles of asset-based lending. Therefore, asset-based lending specifically focuses on securing loans against the value of a borrower's assets rather than their income, making it the correct choice.