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Asset based lending broker

Asset based lending broker

We arrange asset based lending from £2m to £100m: one revolving facility across receivables, stock, plant and machinery and property, priced from 2% over Bank Rate, with the lender chosen from 650+ for how it values your assets.

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No credit search and no upfront fee.

of eligible receivables
Up to 90%of eligible receivables
of stock NOLV
Up to 90%of stock NOLV
over Bank Rate
From 2%over Bank Rate
facilities we arrange
£2m to £100mfacilities we arrange

What is asset based lending?

Asset based lending (ABL) is one revolving credit facility with a single borrowing base across up to four asset classes: trade receivables at up to 90% of eligible debtors, stock at up to 90% of net orderly liquidation value (NOLV), plant and machinery at up to 85% of NOLV, and property at up to 80% of market value, with plant and property as term loans inside the facility. Because it is sized on the balance sheet rather than last year's profit, it often raises more than an overdraft or cash-flow loan, and the limit grows as the business does.

Facilities typically run on 3 to 5 year committed terms. Read more on our asset based lending page.

Why use an asset based lending broker?

ABL lenders differ far more than most borrowers expect. One may value your stock generously and another hardly at all; one will fund a concentrated debtor book and another will cap it; some lend on plant and property inside the facility and some will not. The advance rates, eligibility rules, reporting requirements and fees in the term sheet decide how much you can actually draw, not the headline limit.

An asset based lending broker works for you. We know how each lender treats your type of asset and sector, prepare the information their appraisers and credit teams need, and compare offers on the cash you can really draw, so the facility fits the business rather than the other way round.

Where ABL is used

ABL is used to replace an overdraft or invoice discounting line that no longer keeps pace, to refinance several separate facilities into one, to fund growth and seasonal peaks, and to fund acquisitions and management buyouts where the target is asset-rich. See acquisition finance and MBO funding.

Talk it through

Tell us what you need and we will search 650+ lenders for indicative terms, with no upfront fee.

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Asset based lending broker

How we arrange your ABL facility

  1. 1

    Review the assets

    We look at the debtor book, stock, plant and property and estimate the borrowing base.

  2. 2

    Prepare the credit paper

    We present the business, the assets and the plan in the way ABL credit teams expect.

  3. 3

    Search the market

    We approach the ABL lenders best suited to your assets and sector from 650+.

  4. 4

    Compare term sheets

    We compare advance rates, eligibility, pricing, fees and reporting on the cash you can draw.

  5. 5

    Field exam and valuations

    We manage the lender's audit, stock and plant appraisals and any property valuation.

  6. 6

    Complete

    We work through the documents and the switch from your existing lender to first drawdown.

Who asset based lending suits

Established UK businesses that need £2m or more and carry value in their balance sheet.

What lenders look at

Debtor quality
Who your customers are, how concentrated the book is and how reliably they pay.
Stock
What the stock is, how quickly it would sell and its net orderly liquidation value.
Plant and property
Independent valuations of machinery and any owned premises.
Reporting
Accurate, timely management information and the systems to produce it each month.
At a glance

Typical asset based lending terms

Typical asset based lending terms
Facility size£2m to £100m
ReceivablesUp to 90% of eligible debtors
StockUp to 90% of NOLV
Plant and machineryUp to 85% of NOLV
PropertyUp to 80% of market value
PricingFrom 2% over Bank Rate on the receivables line
Term3 to 5 years, committed

All figures are "up to" and subject to status and lender approval.

Our process

How GBF runs the process

We start with your aged debtors, stock reports, asset register and management accounts and build an estimate of the borrowing base before any lender sees it. We then prepare a credit paper, approach the lenders whose appetite fits your assets, and compare term sheets on availability, cost and flexibility rather than the headline limit. We manage the field exam, appraisals and legal process through to completion, including the handover from your current lender. There is no upfront fee.

  • One senior adviser from first call to completion
  • A credit paper lenders take seriously
  • Indicative terms compared side by side
  • £0 upfront fee
Related facilities

Related facilities we arrange

Asset based lendingHow ABL facilities workInvoice financeFor facilities below £2mTrade financeFunding supplier payments alongside ABLAcquisition finance brokerABL as part of an acquisitionAsset based lending guideA fuller explainer on ABL
FAQs

Asset based lending broker: common questions

How much can I raise with asset based lending?

ABL facilities run from £2m to £100m: up to 90% of eligible debtors, up to 90% of stock NOLV, up to 85% of plant NOLV and up to 80% of property value, in one facility.

What does an asset based lending broker do?

We work for the borrower: estimating the borrowing base, preparing the credit paper, approaching the lenders suited to your assets, comparing term sheets on the cash you can draw and managing the process to completion.

How much does ABL cost?

Pricing starts from 2% over Bank Rate on the receivables line, plus fees for the facility, appraisals and monitoring. We compare the full cost across offers, not just the margin.

What is the difference between ABL and invoice finance?

Invoice finance lends against your debtors alone. ABL adds stock, plant and property to one borrowing base, so it usually raises more and suits facilities of £2m or more.

How long does it take to set up an ABL facility?

Typically several weeks, allowing for the lender's field exam, stock and plant appraisals and legal work. We run these workstreams in parallel to keep the timetable tight.

Is GBF a lender?

No. Growth Business Finance is a commercial finance broker and debt adviser. Finance is subject to status and lender approval.

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