We’ll leverage our access and expertise to secure the best service and rates for your FTL, LTL, Dry, Reefer, and Rail/Intermodal needs across the USA.
Asset-Based Lending (ABL)
Unlock working capital from your existing business assets
Asset-Based Lending (ABL) is a flexible funding solution that allows businesses to raise finance against the value of their existing assets. Rather than relying solely on profitability or unsecured borrowing limits, ABL focuses on what your business already owns or is owed, making it a powerful option for companies looking to release working capital, improve cash flow, or support growth.
At Bothwick Finance, we arrange tailored asset-based lending facilities for UK businesses, structuring funding around your balance sheet and operational needs rather than a one-size-fits-all approach.
What is asset-based lending?
Asset-Based Lending is a form of secured business finance where borrowing is linked directly to the value of specific business assets. These may include:
ABL facilities are typically revolving in nature, meaning the amount you can access can fluctuate as the value of your underlying assets changes. This makes asset-based lending particularly well suited to growing businesses with strong asset positions but uneven cash flow.
How asset-based lending works
An ABL facility is structured around a borrowing base, which is calculated using the value of eligible assets within your business.
The process usually works as follows:
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Asset review
We assess the types of assets your business holds and how they can be used to support lending.
2
Facility structuring
Lenders agree advance rates against each asset class (for example, a percentage of invoices or stock value).
3
Monitoring and reporting
As your asset base grows or contracts, the available funding adjusts accordingly.
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4. Your no-fuss finance is funded.
ABL facilities usually involve regular reporting to the lender, ensuring transparency and control for both parties.
An ABL facility is structured around a borrowing base, which is calculated using the value of eligible assets within your business.
What assets can be used in an ABL facility?
Asset-based lending can be highly flexible, depending on the lender and business profile. Common asset types include:
Accounts receivable
Funding is provided against unpaid invoices, allowing businesses to release cash without waiting for customers to pay.
Stock and inventory
Businesses holding significant stock levels may be able to borrow against inventory value, supporting working capital requirements.
Plant, machinery, and equipment
Owned assets such as machinery or vehicles can be included within an ABL structure, increasing the overall borrowing base.
Property (in some cases)
Property may be incorporated into wider asset-backed facilities where appropriate, depending on risk and structure.
Key benefits of asset-based lending
ABL offers several advantages compared to more traditional lending options:
- Access higher levels of funding based on asset strength
- Facilities grow in line with your business
- Improved cash flow and working capital management
- Greater flexibility than fixed-term loans
- Can support turnaround, growth, or acquisition strategies
Because lending is secured against assets, ABL can often provide funding levels that would not be available through unsecured loans alone.
Who is asset-based lending suitable for?
Asset-based lending is commonly used by:
- Manufacturing and engineering businesses
- Wholesalers and distributors
- Construction and contracting firms
- Asset-rich businesses with fluctuating cash flow
- Companies undergoing rapid growth or restructuring
ABL is particularly effective for businesses with strong balance sheets but tight cash flow, or where traditional lending does not fully reflect the underlying value of the business.
Why arrange ABL through Bothwick Finance?
ABL facilities can be complex, and the right structure is critical. Our role is to ensure the facility works for your business, not just the lender.
When you work with Bothwick Finance, you benefit from:
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Access to specialist asset-based lenders
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Experience structuring multi-asset facilities
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Clear explanation of reporting and obligations
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Facilities aligned to operational realities
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Ongoing support as your business evolves
We take the time to understand how your business operates, so the funding structure supports growth rather than creating unnecessary administrative burden.
Frequently asked questions
Asset-based lending FAQs
How much can I borrow with ABL?
This depends on the value and type of assets available. Advance rates vary by asset class and lender, but ABL often allows higher borrowing levels than unsecured lending.
Is asset-based lending the same as invoice finance?
Through our exclusive partnerships with leading independent and large fleet carriers, we turn their connections into YOUR connections.
Will I need to provide regular reports?
Is ABL suitable for growing businesses?
We’ll leverage our access and expertise to secure the best service and rates for your FTL, LTL, Dry, Reefer, and Rail/Intermodal needs across the USA.
Request a Call Back
If your business holds valuable assets and you are looking for a more flexible way to access funding, asset-based lending may be the right solution.
Request a quote today and one of our account managers will talk you through how an ABL facility could be structured around your business.
To enquire about any of products or services, please contact us to speak to a member of staff.