Finance · 29 December 2015

An introduction to the benefits of asset-based lending

Your business can use invoices to access capital
Your business can use invoices to access capital
When young businesses are looking for that all-important growth capital, it pays to know the options enter asset-based lending.

As a funding method which has its origins thousands of years ago, asset-based lending has enjoyed a renaissance since the end of the recession and is now being used by an increasing number of micro, small and growing companies.

Our sister title, Real Business, has produced a comprehensive guide on asset-based lending in partnership with ABN AMRO Commercial Finance. It looks at what the different options are, speaks with four companies that have used it for different reasons, and looks to inform business leaders on why it might be the right fit.

Serving a a little teaser to the full guide, weve had a look at five different situations and explained how the finance option can be effective.

Asset-based lending providers have a diverse range of businesses contained within portfolios, so reach out to ask where this kind of finance might suit you.

Startup business:

If you are in the infancy of building your business, asset-based lending can be a great way of providing capital for those crucial early purchase such as premises, equipment, R&D and even staff. While this kind of company might not have any physical assets to leverage, intellectual property and early orders can be utilised.

Growing business:

Finance is one of the key factors that is cited as holding back a firm’s potential growth, but asset-based lending can be effective as a temporary or long-term solution. From financing mergers and acquisitions, acquiring a new office space or covering the early costs of expansing overseas, a variety of channels are available.

Business refinancing:


 
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ABOUT THE EXPERT

Hunter Ruthven was previously editor of Business Advice. He was also the editor of Real Business, the UK's most-read website for entrepreneurs and business leaders at the helm of growing SMEs.

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