Tap into your business’s true potential with Asset Based Lending — a powerful way to access flexible capital without giving up equity. In a market where cash flow is king and traditional funding routes are narrowing, Asset Based Lending offers a strategic route to growth by leveraging the strength of your existing assets.
Asset Based Lending (ABL) allows companies to secure funding against a range of valuable business assets such as invoices, stock, machinery, commercial vehicles, and property. Rather than relying solely on credit ratings or trading history, lenders assess the value and liquidity of the assets pledged and provide funding accordingly. This model delivers more flexible and scalable finance, tailored to the unique needs of each business.
For companies that are asset-rich, undergoing a restructure, or in need of a working capital boost, ABL can be a transformative solution. Typically structured as a term loan, businesses receive an upfront cash injection, repaid in manageable monthly instalments. With the ability to secure higher loan amounts by combining multiple assets, this approach enables firms to maintain operational control while freeing up vital cash. In 2023, UK Finance reported that businesses supported by ABL contributed to an annual turnover of over £315 billion — a testament to its growing relevance.
The total facility available depends on the asset’s value, with liquidity playing a key role in determining loan-to-value ratios. For example, invoice finance within an ABL facility can provide up to 90% of the value of outstanding invoices, delivering fast and predictable cash flow.
Assets commonly used in ABL include receivables, inventory, machinery, vehicles, and commercial property. Each asset type offers unique advantages, from the stability of property to the immediate liquidity of invoices. The strength of ABL lies in this versatility — giving businesses the tools to raise funds from nearly every part of their operation.
Benefits extend beyond funding size. Businesses retain full ownership and continue using the pledged assets during the finance period. This ensures ongoing productivity and growth, while unlocking cash to stabilise operations, invest in expansion, or support strategic events such as Management Buy-Outs (MBOs), acquisitions or restructures.
However, as with all finance solutions, there are considerations. Failing to meet repayments may result in assets being repossessed, and some assets may not meet lender criteria due to depreciation or liquidity concerns. Additionally, charges may apply for early repayment or default.
Securing an ABL facility can be done via a finance broker or directly through a lender. Brokers offer access to a wide panel and can manage the application process. Alternatively, working directly with a lender like Time Finance provides a hands-on approach with bespoke structuring and transparent terms.
Time Finance is a trusted direct lender specialising in Asset Based Lending, supporting businesses with tailored facilities that combine secured loans, invoice finance, and asset finance. Working closely with both intermediaries and business owners, Time Finance delivers personalised funding with a flexible, relationship-led approach — enabling businesses to unlock capital and move forward with confidence.
Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
