Asset based lending goes further than standard invoice finance. Rather than releasing cash from your debtor book alone, ABL combines multiple assets within your business, including debtors, stock, plant, machinery and property, into a single facility. As the value of those assets grows, so does the working capital available to you, making it one of the most flexible ways to fund growth, an acquisition or a management buy-out.
An ABL facility applies a lending rate to each asset class within your business and combines them into one revolving line of funding.
The value tied up in your unpaid invoices, just as with standard invoice finance.
Raw materials, work in progress and finished goods held on your balance sheet.
Equipment you already own can be used to unlock further working capital.
Commercial premises you own can also form part of the facility.
As independent brokers, we compare ABL providers across the whole market to structure a facility around the full range of assets in your business, not just your invoices.
We arrange your finance, so you can stay focused on running your business.
We place you with the right funder first time.
We can negotiate better rates than if you went direct to the lenders.
A fast way to grow your business using assets you already own.
Can provide a higher level of working capital than traditional lending facilities.
It's a mix of revolving and term facilities, with available working capital growing in line with your business.
A strong fit for management buy-out and buy-in transactions.
Please reach us if you cannot find an answer to your question.
No. ABL is a mainstream, widely used form of business finance, and in most structures your customers are not aware of the facility at all.
It's often better value than people expect. Because funding is spread across several asset classes rather than one, ABL can provide a higher level of working capital, and the blended cost is frequently competitive against traditional lending.
This is one of the most common misconceptions. ABL is regularly used by healthy, growing businesses to fund acquisitions, management buy-outs and buy-ins, and expansion, not as a last resort.
No. A facility is structured around the specific assets you choose to include, and you don't need to put your entire asset base forward to access funding.
Asset based lending typically suits established businesses with a mix of debtors, stock, plant, machinery or property on the balance sheet, particularly those planning an acquisition, buy-out or a period of growth. If a standard invoice finance facility doesn't unlock enough working capital for your plans.
Speak to our team for a free, no obligation comparison of asset based lending options for your business.
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Simply Invoice Finance is a trading style of Goodman Corporate Consultancy Limited, an independent commercial finance broker, not a lender. As such, we can introduce you to a wide range of finance providers depending on your requirements and individual circumstances. We are not independent financial advisors and are unable to provide independent financial advice. We typically receive payment or other benefits from the finance provider if you decide to enter into an agreement with them.
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