Asset Based Lending

What is asset based lending?

Asset based lending is an innovative funding solution that releases cash against assets on your business’ balance sheet, including debtors, stock (raw materials, work in progress and finished goods), property, plant and machinery. This newly released working capital can then be used to sustain your day-to-day activity, allow for expansion, and provide funding for management buy-outs, management buy-ins, mergers and acquisitions.

What are the benefits of ABL?

• Asset based lending leverages finance against your assets to help your day-to-day operations.
• ABL is more flexible than business loans or bank overdrafts as it is leveraged against your assets.
• Similar to invoice discounting and factoring, ABL releases cash tied up in your sales ledger but contains additional elements such as stock finance, term loans, letters of credit, asset finance, mezzanine funding and debtor protection.
• Asset based lending reduces administrative burdens as there is one point of contact.
• A credit insurance element can be incorporated into an ABL facility for additional peace of mind.
• Asset based lending can be provided through a syndicated loan, also known as structured finance, where a group of lenders work together to provide funding whilst you retain a sole point of contact.

Is asset based lending suitable for my business?

Asset based lending has become a widely used form of finance for business with approximately 50,000 companies of varying sizes now using ABL to assist them in managing their cash flow.

• Cross Border Asset Based Lending
  Cross border asset based lending can be used to help overseas trading by providing trade finance to companies wishing to grow and explore new markets, as well as established importers and exporters.

With more than 70 asset based lenders in the UK and Europe, it is important to seek market insight from an independent broker before you agree to a facility. With over 13 years’ experience in sourcing asset based lending solutions to meet SMEs’ individual needs, Hilton-Baird Financial Solutions will identify which options and providers best meet your business’ funding requirements.

Call us on 0800 9774833 or email info@hiltonbaird.co.uk for more information on asset based lending.