Asset Based Lending (ABL) is a finance solution designed to help businesses reach higher levels of funding.
This type of commercial lending combines invoice finance with funds released against other assets on a company’s balance sheet.
Release money from invoices
Invoice finance provides a company access to money tied up in unpaid customer invoices. As soon as a bill is raised, a business using invoice finance can access up to 90% of the value owed.
Business can choose from invoice factoring or invoice discounting. Companies that opt to use invoice factoring benefit from the support of our expert credit management team, who will collect payments for them. In comparison, businesses using an invoice discounting facility continue collecting payments directly from customers, so the facility remains completely confidential.
What assets can I use for ABL?
Businesses using an asset based lending facility can also secure borrowing against existing assets on their balance sheet including:
- Plant and machinery
- Specialist equipment
- Property
- Stock
Our experienced experts will assess the value of any assets you wish to borrow against. We provide bespoke structures which consider variables such as seasonality and any other corporate challenges or objectives.
Cash flow loans
An ABL structures can also include a cash flow loan. This upfront payment is included in your original agreement and will amortise over a fixed period.
If your business has a history of strong cash generation and a positive forecast going forward, such loans can help you to top-up funding where required.
More funding, more flexibility
Asset Based Lending allows you to turn cash tied up in assets into working capital. It provides higher levels of funding than invoice finance alone, and can give you more adaptability. Using ABL, we have helped businesses complete management buyouts, finalise acquisitions, invest in growth, and realise many other ambitions.
Whatever you want to achieve, we can help. Contact us today to find out how we can work together to create a finance strategy that will meet your requirements.
