Asset Based Lending

About Asset Based Lending

SME’s are increasingly finding their existing overdraft facilities too restrictive and with the banks being unwilling to lend more whilst also requiring more personal security and higher fees, the business owner must look elsewhere to secure alternative funding for your business.

This has allowed alternative forms of funding to step in and fill some of the vacuum, with a variety of flexible facilities being available such as asset based lending. Many businesses have capital tied up in assets, such as stock, plant & machinery and property. Asset based lending allows the cash held within these assets to be released into the business, giving you fast access to substantial sums of working capital.

Who is asset based lending for?

Asset based lending is generally aimed at larger companies. Normally asset based lending facilities will only be available alongside an invoice discounting facility.

Why asset based lending could work for you:

• Asset based lending can be a fast, easily-accessible and cost-effective way to improve cash flow. It provides a stable alternative to traditional lending products and can ease cash flow fluctuations.

• In addition, you may raise more money than through other types of facilities as the lenders are specialists in the assets understanding the risks and thus potentially willing to lend more. Asset based lending is a cost-effective alternative for you to increase working capital having to raise equity. The size of working capital actually grows in line with your with your company. As your assets increase in value so does the facility.

The team at ABL Business work with a variety of funders so you can ensure that you get the best asset finance package that will work for you and your business.