Asset Based Lending (ABL) is a flexible form of business finance that allows businesses to unlock funding against the value of assets they already own. These assets can include receivables, inventory, plant and machinery, and property.

By combining different assets into a single funding facility, ABL can provide higher levels of working capital than funding against receivables alone. It can be used to support business growth, acquisitions, management buy-outs, refinancing, restructuring and turnaround situations.

Asset Based Lending (ABL) can provide businesses with flexible access to working capital by unlocking the value held in assets such as receivables, inventory, plant and machinery, and property.

Key benefits include:

• Unlocking value from existing assets rather than relying solely on traditional cash flow-based borrowing.
• Greater funding capacity by combining multiple business assets into a single funding facility.
• Scalable funding that can grow alongside the business and its asset base.
• Improved working capital to provide additional liquidity and financial flexibility.
• Flexible funding structures tailored around the business, its assets and funding requirements.
• Support for key business events, including growth, acquisitions, MBOs, refinancing, restructuring and turnaround.

Asset Based Lending (ABL) may be suitable for established businesses with valuable assets that need flexible access to working capital.

ABL can be particularly suitable for businesses that:

• Have a strong asset base, such as trade receivables, inventory, plant and machinery or property.
• Are growing or expanding and need additional working capital to support increased sales, new contracts or capacity.
• Are undertaking a transaction, such as an acquisition, management buy-out (MBO), management buy-in (MBI) or change of ownership.
• Need to refinance or restructure existing borrowing to create additional liquidity or financial headroom.
• Are going through transformation or turnaround and need funding to support operational change, investment or business recovery.
• Want to unlock greater value from their assets through a flexible funding facility that can scale with the business.

Asset Based Lending provides funding against the value of the multiple assets within your business, including debtors, plant and machinery, inventory and property. With an Asset Based Lending loan, the cash held within these assets is then released to provide additional working capital.

It works in conjunction with an invoice finance facility which will be required to utilise the benefits of Asset Based Lending and provide an on-going line of credit that grows with your business.

The Asset Based Lending process:

1. Get in touch with us by phone, email, or our call back request form.
2. We will come to visit your business and value your assets.
3. We will then provide you with clear and transparent structure of your funding and pricing, so you know what you’re getting.
4. Once everything is agreed, we will then forward you the Asset Based Lending funds.

Invoice Finance provides funding primarily against the value of a business’s unpaid customer invoices, while Asset Based Lending (ABL) can combine receivables with other assets such as inventory, plant and machinery, and property.

Invoice Finance can be suitable for businesses looking to improve cash flow by releasing money tied up in receivables. ABL is typically suited to businesses with a broader asset base or more complex funding requirements, where multiple assets can be used to provide greater funding capacity.

ABL can therefore be particularly useful for significant business events such as rapid growth, acquisitions, MBOs and MBIs, refinancing, restructuring and turnaround.