What is Asset Based Lending?
Asset based lending is an increasingly popular form of finance in the UK.
Asset Based Lending enables a business to borrow money against its-:
- Property
- Plant & Machinery
- Stock
- Outstanding Debtor Balances (either Factoring or Invoice Discounting).
An Asset Based Lending Facility can include a blend of all of the aforementioned methods of lending to fund a variety of opportunities including
- Growth & Development Capital
- Management Buyouts & Management Buy-ins
- Mergers & Acquisitions
- Refinancing & Turnarounds
- Public to Private Transactions
Trade Association - ABFA
All of the major providers of Invoice Discounting in the UK are members of The Asset Based Finance Association (ABFA) formerly known as the FDA, which acts as a UK based trade association representing an industry with forty years experience of supplying much needed liquidity to UK businesses. Its members provide Factoring, Invoice Discounting and Asset Based Lending.
There are 38 full members of ABFA and 15 Group Members.
In 2008 in the UK and Ireland, ABFA Members provided business finance to over 47,000 businesses and transacted over £208 billion of clients' invoices during that year.