You hear the phrase Asset Based Lending mentioned a lot these days by finance providers in the market but there is a lack of knowledge and understanding of what exactly it is and how it can be used by a company to raise cash to fund their day to day working capital requirements but also for more strategic events such as mergers, acquisitions and MBO’s.

So what is ABL – ABL is an extension of what the Invoice Discounting providers are offering you at present, instead of just funding the debtors ABL also looks at the other fixed and current assets on the balance sheet such as property, plant, machinery and stock and can provide a funding package based on the current and ongoing value of these assets.

ABL is perfect for a business looking to fund an event such as an MBO, Merger or Acquisition.  It allows the management of a business the ability to maximise the finance that can be raised, secured against all assets of the business like your debtors, stock, property and plant & machinery.

In Capitalflow we have an ABL offering that is flexible, creative and will provide your business with the best finance option that maximises the potential funding that can be raised against the assets on your balance sheet.  Whether it is the debtors (Invoice Discounting up to 90% funding against invoices), Property (up to 75% LTV), Plant & Machinery, etc (new and old can be funded against) or stock / inventory (raw material or finished goods) we can create the facility that best suits your funding requirements and repayment capabilities.

This article was written by John Mackey, Head of Asset Based Lending

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