Final answer:
The two most common forms of collateral used for asset-based borrowing are real estate property and equipment, both of which serve as security for the lender in the event of a borrower defaulting on a loan.
Step-by-step explanation:
The two most common forms of collateral for asset-based borrowing are real estate property and equipment. In the context of asset-based lending, banks and other lending institutions often require that the borrower provides collateral as security for the loan. This collateral serves as a form of protection for the lender, in case the borrower is unable to repay the debt. Real estate property can include both commercial and residential properties, while equipment can refer to machinery or any high-value assets utilized in the operation of a business. These forms of collateral can be seized and sold by the lender to recoup losses if the borrower defaults on the loan.