Asset Based Lending
What is Asset-Based Lending?
Asset-based lending is a flexible form of business finance that uses the assets on your balance sheet as security for borrowing. These assets might include debtors, stock, equipment, machinery, or property.
By unlocking the value of these assets, businesses can access the capital they need to fund growth, purchase inventory, invest in expansion, or cover day-to-day operating costs. Structured around your requirements, asset-based lending provides adaptable funding that evolves with your business.
Types of Asset-Based Lending
There are several ways asset-based lending can be structured, depending on the assets available:
Invoice Discounting
Improves cash flow by releasing funds linked to your sales invoices.
Accounts Receivable Financing
Provides borrowing against outstanding invoices.
Inventory / Stock Financing
Releases cash based on the value of stock held.
Plant & Machinery Financing
Allows borrowing against the value of equipment such as cranes, vehicles, or IT systems.
Equipment Financing
Similar to plant and machinery finance, this facility leverages the value of essential business equipment.
Property Financing
Unlocks funding secured against company-owned property.
Advantages of assest based lending
Retain full control of your business
Maximise borrowing capacity by leveraging existing assets
Strengthen cash flow quickly and efficiently
Use alongside other facilities such as hire purchase, invoice finance, or leasing
Faster funding decisions than traditional lending routes
Is Asset-Based Lending Right for Your Business?
When considering an asset-based lending solution, it’s important to assess how it aligns with your current funding structure and business goals:
- Flexibility – Does your current funding restrict growth? Asset-based lending adapts to your needs with fewer limitations.
- Speed – Do you need cash quickly? These facilities can be secured and released swiftly, making them ideal for covering operating costs or urgent opportunities.
- Bank Limitations – Has your bank reduced access to credit? Asset-based lending allows you to leverage solid assets, even when traditional funding lines are unavailable.
- Cost – While interest rates may not be as low as standard bank loans, they are generally more favourable than unsecured lending.
- Practicality – Asset-based lending is often more straightforward than traditional borrowing. Because loans are secured against assets rather than cash flow, businesses gain more freedom in making operational decisions.
At Kingswell Partners, asset-based lending isn’t just about borrowing – it’s about unlocking the strength of your balance sheet to create opportunity, agility, and growth. Through our network of trusted lenders, we secure facilities that deliver, giving your business the upper hand.