Asset Based Lending (ABL ) allows
you to raise significant funding for your business through a
combination of traditional Factoring or Invoice
Discounting and
funds raised against your existing assets. In terms of lending solutions,
whether you’re planning on growing, buying, refinancing or expanding, Asset
Based Lending can often raise significantly greater funding than
traditional bank lending.
How it works
Asset Based Lending allows you to raise from
£50k – £50m with:
up
to 100% on outstanding invoices
up
to 80% of the market value on plant and machinery
up
to 30% on raw materials
up
to 50% on finished products
up
to 60% on property
Advantages
Raise
money for MBI/MBO’s or refinancing, without surrendering equity
Enjoy
continuity of funding, which grows as your business grows
ABL is a fast and effective way to fund growth and it’s scalable
It provides a higher availability of working capital when compared with traditional lending facilities
receivable and inventory facilities are revolving facilities, with available working capital growing in line with your business
Build an Asset based Lending package to fit your precise requirements
Asset based lending will help maintain cash flow – especially seasonally for businesses who trade in fluctuating markets.
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Bad debt protection insures your ledger in the event of a customer’s insolvency or protracted non
payment. As a business you protect your assets; offices, plant and
machinery, computers, or company vehicles. However, your biggest asset, your
debtor book, is unprotected.
Not all finance
companies provide bad debt protection in the same way therefore it is important
that an insurance product is best suited to your needs
There are three
main types of bad debt protection products. As to which one is the most
suitable will depend on factors such as turnover and quality of your customers
Stand Alone.
Bad Debt Protection
is a way of insuring your ledger against insolvency. Traditionally this is
bolted on to a factoring or invoice finance facility however a standalone
facility provided by a specialist insurance provider can be cheaper and provide
superior cover. Clients can also choose which debtors they want to insure, and
only pay the cost of insurance as and when they fund invoices against that
debtor. Insurance can be provided for international
trade as well as domestic
Non-Recourse Factoring
Non Recourse
factoring provides businesses with a cash flow finance solution along with the added value of
bad debt protection. Factoring provides an immediate injection
of cash into the business and will provide a source of funding that will grow
with your business. Bad debt protection provides peace of mind that you will
get paid in the event of a customers’ insolvency / inability to pay. Factoring
also can save valuable management time by chasing and collecting outstanding
invoices on your behalf.
Non-Recourse Invoice Finance
Similar to other
invoice discounting solutions, non-recourse invoice discounting releases cash
against your invoices within 24 hours of issue, giving you access to working
capital required for day-to-day activities and business expansion.
What makes
non-recourse invoice discounting different from other invoice discounting
solutions is that the invoice finance company additionally provides bad debt
protection to safeguard your business against the risk of insolvency, and even
in instances late payment of debts.
XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.
