Asset Finance, Asset Based Lending (ABL)
Asset Finance, Asset Based Lending (ABL)
This type of Finance covers a variety of financing options, but in short ABL means using a Company's assets as collateral upon which to secure borrowing or a further line of credit. This type of Finance may well fall between the Factoring or Invoice Discounting area, but can also encompass Inventory, Freehold Property and Plant and Machinery. It should be stated however that ABL is often accessed by Companies who, because of their reduced options, are unlikely to secure ordinary, unsecured, Bank Lending. Improvements in the way that Lenders working in this field interpret the worth of a Company's Assets has meant that more intangible assets such a Brands are likely to be considered as usable for this purpose.
Advantages: ABL allows Companies to make their Assets work harder for them.
Disadvantages: A more expensive form of Business Finance and it can reduce your Asset Inventory when seeking further lines of Credit
Any Questions?
Henley Business Finance have many other financial solutions available to all areas of business, so if you have any queries regarding your own business finance requirements, or if you would like further information on any financial solution request a call back using the form at the bottom of this page, call us on: 01929 422210 or use our contact form.