5 benefits of Asset-Based Lending in challenging times


News - 29 March 2023

Businesses are increasingly looking at Asset-Based Lending (ABL) to boost their financial flexibility. Below are five reasons to consider ABL in your next steps towards business growth, especially in today’s challenging economic climate.

1. Benefit from a relationship-driven approach

We’re proud of our relationship-driven approach. Our dedicated relationship managers take the time to know you and understand your business. Our mission is to ‘open up space for you to succeed’ by providing you with tailored solutions for your business needs and future growth using proven products.

2. Improve your cash flow

ABL is based on the value of the assets on your balance sheet. From initial application, it can take less than 4 weeks to receive funding and so it allows your business to improve cash flow faster than with traditional lending. ABL assets can be tangible, quantifiable and come with a solid paper trail. They can include stock, machinery, property, your sales ledger – or the sales ledger of a company you’re acquiring – otherwise referred to as debts owed to you by customers. Today’s rising prices and pressure on global supply chains, combined with long cash flow cycles, can easily cause short-term cash flow problems as well as working capital cycles to increase – all of which place business growth at risk. ABL provides headroom meaning businesses can not only survive, but thrive. Learn more about asset-based lending

3. Freedom to grow your business, your way

Fewer restraints on ABL funding uses mean, as a business owner, you simply focus on what your business needs to stay ahead of the competition; be it new hires, new facilities, better buying, automation investment, bad debt protection, cross-border growth, acquisitions – or simply the cash to cover fluctuating operational and purchasing expenses. ABL puts you in charge of your operation’s growth plans.

4. Flexible solutions

Combining ABL products with other funding solutions means you can access more funding than would be the case with traditional lending or with an overdraft. At ABN AMRO Commercial Finance, we offer ABL solutions at a minimum of £1million or more. The percentage of funding available against assets is situation-specific; it can range from 30% to up to 95% of your assets’ value. Find out more ABN AMRO Commercial Finance’s asset-based funding percentages

5. Accelerate business growth with continuity of funding

Cash flow problems can undermine even the most exciting growth opportunities. This is because you need cash to fund your company’s growth – whether for buying raw materials, funding sales, giving new customers credit or coping with long payment terms. With ABL, continuity of funding is built in; the more your company grows, the more your assets are worth, and the greater your asset-based lending capacity.

‘Our tailored approach, our involvement of dedicated relationship managers, our regional presence across the UK, and our on-point expertise and services make ABN AMRO Commercial Finance the go-to partner for finance solutions in an unpredictable economy

— Chris Pacey, Head of Relationship Management, ABN AMRO Commercial Finance

Learn more about Asset Based Lending or contact us now

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