Asset Based Lending
Release working capital tied up in your assets.
Asset Based Lending (ABL) can support you to grow your business by unlocking cash tied up in your assets. You can increase your working capital by raising funds using your existing assets as security from:
- plant and machinery
Asset Based Lending typically comprises of an Invoice Discounting facility alongside further funding secured against a range of existing assets. Additional funding can be generated from cash flow lending. If you wish to terminate your Asset Based Lending facility at any point, simply give us notice†. A termination fee may apply and will be determined on an individual basis.
Why use ABL?
- Growth – increasingly businesses are using ABL to support their growth ambitions by maximising cash availability to help them secure new contracts, recruit or invest.
- Refinance – as an alternative to traditional funding, ABL releases cash from the balance sheet today, offering greater working capital.
- Restructure – ABL offers the flexibility to complete corporate restructuring deals, potentially offering greater equity options for shareholders.
- Mergers and acquisitions – ABL is widely used to support this market, providing senior debt secured against assets including those in the business being acquired.
- Management buyouts – a popular exit option, that allows management teams to acquire their business whilst providing on-going working capital support.
The benefits of ABL
- Protects equity – by leveraging assets more effectively, ABL offers the ability to raise significant funds without sacrificing equity.
- Price – compares favourably to traditional funding methods, whilst releasing significantly more capital.
- Cost effective – improve your working capital and turn your assets into cash to support your plans.
- Scalable – your available finance grows in line with your business. It can be used as part of a wider funding package for growth.
- Flexible – manage cashflow fluctuations and respond to your business needs.
- Diverse – raise funding on assets not typically allowed as security on a classic loan.
To find out more about ABL, call us on 0800 169 4356.
As one of the largest banks in the UK, your business will benefit from our specialist approach, commitment to long-term relationships, expertise and access to dedicated sector knowledge.
† Negotiable term lengths
*Terms and conditions apply.
Important Legal Information
Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Factoring and Invoice Discounting facilities may be provided by either Lloyds Bank Commercial Finance, Lloyds Bank plc or Bank of Scotland plc.
When using Asset Finance your agreement will be with a Lloyds Banking Group company whose terms and conditions will apply. The provision of credit or leasing services by us is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.