Is Asset Based Lending Right For Your Business?
In a nutshell, what is Asset Based Lending (ABL)?
Asset Based Lending is being used increasingly by ambitious businesses in the Region as a dynamic source of funding. ABL unlocks working capital across all asset classes with Invoice Discounting at the core, supplemented by loans against Stock, Plant & Machinery and Property. Cash flow loans are also available (subject to EBITDA) to secure even higher levels of working capital.
What advantages does it offer?
As traditional forms of business borrowing have become more restrictive and harder to access, ABL has come into its own. The key advantage to an ABL facility is that it generates a higher amount of working capital than traditional sources of finance can release. With this flexible form of funding in place, a business can gain greater access to cash that has been tied up in its existing infrastructure. It therefore offers businesses a way of releasing funds into the organisation quickly, which would otherwise be inaccessible.
Where does ABL come into its own?
ABL provides certain funding for businesses going through event driven change, such as mergers and acquisitions, management buyouts and buyins, funding growth, refinancing and restructuring.
Typically, conventional forms of financing simply cannot provide the amount of funding businesses require, particularly where on-going financial headroom is critical for sustained growth.
ABL has become recognised as a proven enabler for a wide variety of businesses, including service organisations in addition to the traditional Lancashire heartland of manufacturing, wholesale and distribution.
How can I find out if Asset Based Lending is right for my business?
Praetura Commercial Finance works with an entire spectrum of companies with revenues of more than £2million, ranging from dynamic fast-growth businesses to established businesses embarking on serial acquisitions.
We’ll be happy to help you assess the potential of asset based lending for your business, with a view to turning your business plans and ambitions into reality. All decisions are made in-house with no layers of bureaucracy, critical to providing you with the speed and certainty you need to drive further success.