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Asset-Based Lending
Fuel Growth. Unlock Working Capital. Fund the Future.
Flexible funding for UK SMEs using receivables, stock, plant, and property to release working capital.
Facilities up to £25m.
Speak to an ABL specialist.
What is asset-based lending?
Asset-based lending (ABL) is a form of secured business finance that allows companies who sell to other businesses to unlock working capital by using the value of their assets.
These assets can include:
- Accounts receivable (sales ledger)
- Stock and inventory
- Plant and machinery
- Commercial property
- Cashflow loans
Unlike traditional lending, which focuses heavily on profitability and historic cashflow, asset-based lending is primarily driven by the value and liquidity of your assets.
This means funding can grow alongside your business, providing flexible access to capital that scales as your company expands.
At Skipton Business Finance, we provide flexible and scalable asset-based lending facilities designed for mid-market SMEs looking to:
- Accelerate growth
- Improve working capital
- Fund acquisitions or management buy-outs
- Invest in new opportunities
- Release capital tied up in assets
Our funding solutions help businesses unlock working capital while maintaining control of their operations and future growth strategy.
How asset-based lending works
- Your business assets are independently valued.
- A lending facility is structured based on the value of those assets.
- Funding is released against receivables, stock, property or machinery.
- As asset values grow, available funding can increase.
This makes asset-based lending particularly powerful for growing businesses with strong balance sheets.
What types of businesses could benefit from asset-based lending?
Asset-based lending may be suitable if your business:
- Has multiple assets such as receivables, stock, plant or property
- Requires larger funding facilities typically from £3m upwards
- Needs funding for expansion, acquisitions or restructuring
- Wants a scalable funding solution that grows with the business
Many businesses choose ABL when they need funding for:
- Management Buy Outs (MBOs)
- Management Buy Ins (MBIs)
- Mergers and acquisitions
- Business expansion
- Refinancing existing facilities
- Working capital support
At Skipton Business Finance, we work with a wide range of sectors including:
- Manufacturing
- Logistics and transport
- Distribution and wholesale
- Importers and exporters
- Print and packaging
- Business services
- Engineering
Every facility is structured around the specific needs of your business, ensuring the right balance between flexibility, funding capacity and long-term sustainability.
Asset-based lending criteria
Up to £25m. UK-based businesses.
Up to 90% advance rate
Receivables must represent:
- Minimum 51% of facility structure
Up to 75% Loan-to-Value
5-year term with up to 20-year amortisation profile
Up to 75% Loan-to-Value
Based on 120-day ex-situ valuation
Maximum 5 year fully amortising term
Up to 90% of Net Orderly Liquidated Value (NOLV)
Revolving facility
Up to £2m or 1.5x EBITDA
Maximum 36-month term
Skipton Business Finance is an accredited lender under the UK Government Growth Guarantee Scheme
What types of SMEs do we like to work with?
Our asset-based lending solutions are typically suited to businesses that are:
- Looking for a working capital injection
- Growing rapidly or undergoing change
- Acquisitive and looking for strategic expansion
- Management teams looking for appropriate MBO structures
- Refinancing to a more suitable facility with increased funding capability and headroom
Why businesses choose Skipton Business Finance
Businesses choose Skipton Business Finance because we combine flexible funding with a relationship-driven approach.
Our clients benefit from:
Direct access to decision makers
You deal with experienced specialists who understand complex funding structures.
Facilities that scale with your business
Our funding grows alongside your business performance.
Stable funding lines
All facilities are backed by Skipton Building Society, providing long-term stability.
A collaborative approach
We work closely with businesses, accountants and advisers to structure the right funding solution.
25 years of supporting UK SMEs
For over two decades we have helped businesses unlock working capital and accelerate growth.
Learn more about our wider range of business finance solutions.
What Should I Do Next?
Download our Asset-Based Lending introduction
Asset-Based Lending introduction
Speak to Our Asset-Based Lending Team
If you would like to discuss how asset-based lending could support your business, speak to one of our specialists.
Asset based lending FAQs
What is asset-based lending?
Asset-based lending is a form of secured business finance where funding is provided based on the value of business assets such as receivables, stock, plant or property.
How much can I borrow?
Facilities typically range from £3m to £25m, depending on the value of assets available as collateral.
Is asset-based lending suitable for growing businesses?
Yes. ABL facilities are designed to scale as your business grows because funding increases in line with asset values.