What is Asset Based Lending?
Asset based lending (ABL) blends invoice finance with funds released against other business assets, such as stock, property, plant and machinery, providing more capital than invoice finance alone.
Asset based lending is an excellent option for larger businesses looking to finance a management buy-out/buy-in, a merger or an acquisition. Alternatively the extra funds can be used as a contingency, providing additional working capital as and when required. ABL a really useful product to help businesses through their lifecycles.
Funding structure
Lenders tend to have a creative, bespoke approach to Asset Based Lending deals and based on the specific requirements of the transaction and the structure of each business. They will fund against both inventory, property and plant and machinery on a flexible basis.
For businesses with proof of strong cash generation in the past and with positive cash forecast for the future, a cash flow loan may also be available to top-up funding where required