Asset Based Lending

Asset Based Lending (ABL) can support you to grow your business by unlocking cash tied up in your assets. You can increase your working capital by raising funds using your existing assets as security from:

 

  • debtors
  • stock
  • plant and machinery
  • property

 

ABL can be offered alongside Invoice Discounting or Factoring/Invoice Finance.

 

Why use ABL?

 

  • Growth – increasingly businesses are using ABL to support their growth ambitions by maximising cash availability to help them secure new contracts, recruit or invest.
  • Refinance – as an alternative to traditional funding, ABL releases cash from the balance sheet today, offering greater working capital.
  • Restructure – ABL offers the flexibility to complete corporate restructuring deals, potentially offering greater equity options for shareholders.
  • Mergers and acquisitions – ABL is widely used to support this market, providing senior debt secured against assets including those in the business being acquired.
  • Management buyouts – a popular exit option, that allows management teams to acquire their business whilst providing on-going working capital support.

 

Benefits of ABL

 

  • Protects equity – by leveraging assets more effectively, ABL offers the ability to raise significant funds without sacrificing equity.
  • Price – compares favourably to traditional funding methods, whilst releasing significantly more capital.
  • Cost effective – improve your working capital and turn your assets into cash to support your plans.
  • Scalable – your available finance grows in line with your business. It can be used as part of a wider funding package for growth.
  • Flexible – manage cash flow fluctuations and respond to your business needs.
  • Diverse – raises funding on assets not typically allowed as security on a classic loan.