Asset based lending covers a number of financial products such as invoice finance, secured debt, asset finance, property finance and stock finance amongst others.
It is the lending of capital secured against the assets within the business, such as invoices and physical plant and machinery.
Asset lending can be on a term loan basis so with a fixed monthly repayment of a specific time period, but could also be linked to seasonal income.
This type of lending can be very effective when looking to restructure a business, make acquisitions, fund a management buyout or acquire new assets to improve operational efficiencies.
