Asset-based lending refers to ‘pooling’ fixed assets in order to provide the maximum amount of finance. It allows businesses to utilise invoice finance coupled with other lending solutions to release cash tied up in stock for example, and is usually used for large-scale investment projects, management buy-ins and buy-outs or turnaround situations. This differs from asset finance, which is where finance is secured to help you obtain fixed assets such as vehicles, machinery or equipment, through hire purchase or leasing agreements.
Asset-based lending can help businesses take advantage of growth opportunities, without damaging their working capital. It is a broad term that refers to any loan to a business that is secured with any company asset. Designed to help businesses reach higher levels of funding, asset-based lending combines invoice finance with lending against other assets. This can also be topped up with a cash flow loan.
How Able Commercial Finance can help
We understand that accessing finance to help your business grow can sometimes feel difficult and confusing. We are able to search the market and help find a lender that matches your needs, making it easier for you to unlock capital in your business, in order to access finance for investment or other similar circumstances.
By utilising asset-based lending, it’s possible to raise the maximum amount of cash for a business, which can be incredibly helpful. By combining invoice finance with other lending solutions, you can ensure revolving credit and term loans.
To find out more about asset based lending or other types of commercial finance, get in touch today.
