Asset Backed Lending
Unlock Your Value
Turn your balance sheet into working capital. Leverage stock, receivables, equipment, and property for flexible facilities from £250k to £50m+.
Assets We Can Leverage
Receivables
70-90% advance
Inventory
30-60% advance
Equipment
50-80% FSV
Property
60-75% LTV
Combined Facility Example
Manufacturer with £2m receivables, £500k stock, £1m equipment
£0m
Potential Facility
0+
ABL Lenders
What is Asset Backed Lending?
Asset backed lending (ABL) is a sophisticated form of secured business finance that unlocks the value tied up in your company's assets. Rather than relying solely on profit and cash flow metrics like traditional lending, ABL allows businesses to borrow against the value of their receivables, inventory, equipment, property, or a combination of these assets.
This makes ABL particularly powerful for asset-rich businesses that may not fit the traditional lending criteria — whether due to rapid growth consuming cash, cyclical trading patterns, recent acquisitions, or a desire to maximise available working capital. The facility is typically revolving, meaning you can draw and repay as business needs dictate, only paying interest on what you use.
ABL facilities range from £250,000 to £50 million or more, making them suitable for SMEs through to large corporates. They're commonly used for: funding working capital needs, supporting business growth, refinancing existing debt, funding acquisitions and management buyouts, and providing headroom during business turnaround situations.
At AssetFund, we work with specialist ABL providers across the UK to structure facilities that match your business profile. Our team understands the complexities of multi-asset facilities and can help navigate the options to find the right solution for your specific requirements.
Finance Solutions
Types of Asset Backed Finance
Different assets, different structures. We help you leverage the right combination.
Receivables Finance
The cornerstone of most ABL facilities. Borrow against the value of your outstanding invoices, with funding that grows as your sales increase.
Trade debtors / invoices
70-90% of eligible receivables
Key Features
- Immediate access to invoice value
- Grows with your sales
- Confidential options available
- Bad debt protection possible
- International debtors considered
Stock & Inventory Finance
Release working capital from your stock holdings. Particularly valuable for wholesalers, distributors, and manufacturers with significant inventory.
Raw materials, WIP, finished goods
30-60% of stock value
Key Features
- Fund stock purchases
- Seasonal stock build-up support
- Regular stock monitoring
- Various stock types considered
- Integrate with receivables finance
Plant & Machinery Finance
Include the value of your owned equipment in a combined facility. Useful for refinancing existing assets or maximising your borrowing base.
Unencumbered equipment & plant
50-80% of forced sale value
Key Features
- Refinance owned equipment
- Release capital from assets
- Wide range of assets accepted
- Professional valuations arranged
- Combine with other asset classes
Property-Backed Finance
Commercial property can be included in ABL facilities or used as additional security to enhance borrowing capacity.
Commercial property
60-75% LTV
Key Features
- Owner-occupied or investment property
- First or second charge
- Development finance available
- Bridge to term refinancing
- Enhance overall facility size
Combined ABL Facilities
The real power of ABL comes from combining multiple asset classes into a single, integrated facility. A manufacturer might leverage receivables, stock, and equipment together to maximise available funding and create operational flexibility. Combined facilities typically offer:
- Higher overall facility limits
- Single lender relationship
- Consolidated reporting
- Operational efficiency
Ideal For
Who Uses ABL?
ABL suits asset-rich businesses across many sectors, particularly those with complex or growing funding needs.
Manufacturers
Leverage receivables, stock, and equipment for comprehensive working capital
Wholesalers & Distributors
Fund stock purchases and manage cash flow across payment cycles
Logistics & Transport
Combine fleet value with receivables for flexible facilities
MBO/MBI Teams
Acquisition finance secured against target company assets
High-Growth Businesses
Funding that scales with sales when cash flow lags behind growth
Property-Rich Businesses
Unlock equity in commercial property alongside other assets
Benefits
Why Choose ABL?
Asset backed lending offers unique advantages for businesses with valuable assets on their balance sheet.
Grows With Your Business
As your assets increase in value, your available facility grows automatically. Funding that scales with success.
Higher Borrowing Capacity
Access more funding than traditional lending by leveraging the full value of your assets, not just profit history.
Flexible Drawdown
Draw and repay as needed within your facility limit. Only pay interest on what you use.
Alternative to Equity
Raise capital without diluting ownership. Keep full control of your business while accessing growth funding.
Common Use Cases
- Fund working capital for growth
- Refinance existing debt facilities
- Finance management buyouts (MBO)
- Support business acquisitions
- Manage seasonal cash flow
- Fund turnaround situations
- Provide headroom for opportunities
ABL vs Traditional Lending
ABL focuses on the value of your assets rather than purely on profitability metrics. This makes it accessible to fast-growing businesses, cyclical industries, and situations where traditional lending criteria don't fit.
"Our bank wanted to reduce our overdraft, which would have severely constrained our growth. AssetFund introduced us to an ABL provider who structured a £3 million facility against our receivables and stock. Not only did we have more headroom, but the facility grows automatically as we grow. It was transformational for our business."
Tom Harrison
Harrison Industrial Supplies, Nottingham
Frequently Asked Questions
ABL FAQs
Common questions about asset backed lending, answered clearly.
Asset backed lending is a form of secured business finance where your company borrows against the value of its assets. These assets can include receivables (invoices), inventory, machinery, equipment, property, or a combination. The lending facility is secured against these assets, allowing you to access working capital without giving up equity or taking on unsecured debt. ABL facilities are typically revolving, meaning you can draw and repay as needed within your agreed facility limit.
ABL facilities can be secured against various business assets including: trade receivables (invoices owed to you), inventory and stock, plant and machinery, commercial vehicles and equipment, commercial property, and intellectual property in some cases. Many ABL facilities combine multiple asset types to maximise the available funding. The value lenders will advance varies by asset type — receivables typically attract the highest advance rates (70-90%), while inventory may be 30-60% and fixed assets 50-80% of forced sale value.
Traditional loans are typically for a fixed amount, repaid over a set term with regular instalments. ABL is a revolving facility that flexes with your business — as your asset values increase (through higher sales or inventory), your available funding increases. You only pay interest on what you actually draw, and the facility can grow as your business grows. ABL is often available to businesses that might not qualify for unsecured lending, because the security reduces the lender's risk.
ABL facilities typically start from around £250,000 and can extend to £50 million or more for larger businesses. The facility size depends on the value of your eligible assets. For combined facilities using multiple asset classes, larger facilities are often possible than with single-asset finance. We work with lenders across this range to match facility size to your requirements.
ABL costs typically include: an arrangement fee (usually 0.5-2% of facility), a service/management fee (0.2-1% of facility per month), and interest on drawn funds (typically 2-6% above base rate). Because ABL is secured, rates are often lower than unsecured lending. Costs vary based on facility size, asset mix, and your business profile. We always provide clear, comparable quotes showing all costs.
ABL facilities typically take 4-8 weeks to set up from initial enquiry to first drawdown. This allows time for asset valuations, legal documentation, and due diligence. The timeline depends on the complexity of the facility and how quickly required information is provided. Once established, drawing against your facility is typically same-day or next-day.
ABL is ideal for businesses with significant assets on their balance sheet who need flexible working capital. It's particularly popular with: manufacturers and distributors with inventory and receivables, wholesalers and retailers with stock, businesses experiencing rapid growth where cash flow struggles to keep pace, companies looking to refinance existing debt, and businesses funding acquisitions or management buyouts.
ABL facilities require regular reporting on your asset values — typically monthly or sometimes weekly for receivables and stock. This allows the lender to maintain the security position and adjust your available facility. Most lenders provide online portals for reporting and facility management. The level of monitoring depends on facility size and complexity.
Ready to Unlock Your Assets?
Discuss your requirements with our ABL specialists. We'll help you understand the options and find the right facility for your business.
AssetFund is authorised and regulated by the Financial Conduct Authority