From $900,000 to $90m – loan amount depends on the lender, your business profile and the type of asset you're releasing cash from, e.g. debtors (up to 90%), inventory (up to 85%), plant and machinery (up to 75%) and property (up to 75%)
1-5 years typically
Interest rates vary widely, depending on your turnover and trading history
Within a day
To fund expansion, acquisitions or buyout
Large or fast growing, with a trading history and turnover of more than $18m
Asset-based lending (ABL) is a way for you to finance rapid growth or large contracts, using your existing assets as security. These assets might include invoices (debtors), inventory, equipment, machinery, commercial property and intangible assets such as Intellectual Property (IP).
Asset-based lending (ABL) allows you to release cash that’s tied up in your balance sheet. Typically, an asset-based loan is a structured combination of invoice finance and a business loan (e.g. invoice discounting or factoring alongside an unsecured business loan).
It used to be a last resort for businesses unable to find lending elsewhere but it’s since lost these negative overtones.
Here are some scenarios where ABL could be useful:
Because loan sizes for asset-based lending are usually large, there are fewer lenders at this higher end of the market, but there are several benefits: