Asset-based Lending

Borrowing against your business assets such as inventory, machinery or receivables can provide a flexible, fast and efficient means to raise funds to harness business opportunity, restructure existing financing or meet your seasonal business needs. 

What is asset based lending? 

  • Asset-based lending (ABL) takes a holistic view of a business’s assets, such as receivables, inventory, property, and plant and machinery, to optimise its working capital and financing potential
  • ABL can provide a flexible financing solution linked to the revolving nature of your business – often with less onerous debt servicing obligations than conventional debt.

How can asset-based lending support your business?

  • Funding looks beyond your historical performance to consider specific short and longer-term business objectives – for example, acquisitions, loss of a major shareholding or resourcing for seasonal peaks
  • UK companies are increasingly looking to structured cashflow lending to drive their business growth, providing an alternative to traditional bank loans and overdrafts
  • Asset-based lending offers a powerful financing solution for mid-sized and larger companies seeking to benefit from the value of their assets, achieve greater liquidity and pursue new growth opportunities
  • Lending solutions are available in multiple currencies.

Is asset-based finance right for you?

Asset-based lending can be particularly suitable for:

  • Growth companies where funding requirement outstrips equity/retained earnings/EBITDA
  • Businesses with distinct seasonality, for example where a build-up of inventory is required to support a seasonal selling period
  • ‘Cash out’ or ‘long-term use’ situations, such as management buy-outs, funding dividends or acquisitions, export credit agency (ECA) financing
  • Restructuring existing funding arrangements.

Important information

The products referred to in this webpage are subject to separate terms and conditions.

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