26.11.2019 Finance

Using asset based lending to protect your growth

How Asset Based Lending can help your ease your cashflow issues!   

SME’s are increasingly finding their existing overdraft facilities too restrictive. With the banks being unwilling to lend more whilst also requiring more personal security and higher fees, this leaves you, the business owner, looking elsewhere to secure alternative funding for your business.

This has allowed alternative forms of funding to step in and fill some of the vacuum, with a variety of flexible facilities being available such as asset based lending.

But how can asset based lending help my business?

Asset based lending is a fast, easily accessible and cost-effective way to improve cash flow. It provides a stable alternative to traditional lending products and can ease cash flow fluctuations. Many businesses have capital tied up in assets, such as stock, plant & machinery and property. Asset based lending allows the cash held within these assets to be released into the business, giving you fast access to substantial sums of working capital.

One of the other selling points of asset based lending is that you may raise more money than through other types of facilities as the lenders are specialists in the assets understanding the risks and thus potentially willing to lend more. Asset based lending is a cost-effective alternative for you to increase working capital having to raise equity. The size of working capital actually grows in line with your company. As your assets increase in value so does the facility.

Who is asset based lending aimed at?

Any business can use asset based lending but it is generally aimed at larger companies. This is because asset based lending facilities are only available alongside an invoice discounting facility.

We work with a variety of funders, ensuring that you get the best asset finance package that will work for you and your business.

If you’d like to find out more about Asset Based Lending get in touch with us today on +44(0) 1484 506250 or email info@charlesworthbgs.com