Asset-Based Lending UK

Asset-based lending works by combining multiple asset classes into a single facility. Lenders apply advance rates to each asset, such as receivables, stock or property, to determine total borrowing capacity.

The facility then operates as a flexible funding line, with availability adjusting in line with changes in the underlying asset base.

The amount available depends on the assets within the business. Typical structures include up to 90% of receivables, 60% of inventory and 70% of property value. Facilities arranged by Enness Global typically range from £2 million to £50 million+, depending on how assets are combined.

Asset-based lending can be structured against a range of assets, including outstanding invoices (receivables), inventory and stock, commercial property, plant and machinery, and, in some cases, cash flow or EBITDA.

By combining multiple asset classes within a single facility, businesses can significantly increase overall borrowing capacity and access more flexible funding structures.

No. Invoice finance is a single component of asset-based lending, focused only on receivables. Asset-Based Lending is broader, combining multiple assets, such as invoices, stock and property, into one structured facility, allowing for larger and more flexible funding solutions.

By incorporating multiple asset classes, ABL can significantly increase overall borrowing capacity compared to standalone invoice finance.

Businesses typically use asset-based lending to fund growth, support acquisitions, increase working capital, refinance existing debt or manage seasonal cash flow. It is also used as a way to raise capital without diluting equity.

By releasing capital tied up in receivables, inventory and other assets, ABL can provide higher funding levels and greater flexibility than traditional lending, particularly for businesses with strong balance sheets.

Timelines depend on the complexity of the facility. Straightforward receivables-led structures can often be completed within 2-4 weeks, while more complex, multi-asset facilities typically take 4-8 weeks.

Asset-based lending is typically suited to established UK businesses with strong balance sheets and tangible assets, particularly in sectors such as manufacturing, distribution, wholesale and logistics.

Companies with significant receivables, inventory, property or equipment are often well-positioned to access ABL facilities, especially where traditional lending based purely on cash flow may be restrictive.

ABL can be particularly effective for businesses that are:

• Experiencing rapid growth and requires additional working capital
• Managing seasonal cashflow fluctuations
• Funding acquisitions or expansion
• Looking to refinance existing facilities
• Seeking to unlock capital without diluting equity

Because funding is secured against assets rather than relying solely on profitability, asset-based lending can provide greater flexibility and higher borrowing capacity for businesses with strong underlying asset bases.

At Enness Global, we assess your full balance sheet to determine how assets can be combined to structure a facility aligned to your funding requirements.