These lenders are almost the opposite of cash flow lenders.
Whilst they will have regard to profitability and cash flow, they are primarily focussed on what can be generated against the assets on the Balance Sheet.
An asset based lender typically develops a lending package with various debt products secured against property, stock, debtors and fixed assets.
Not all ABLs are the same; they differ in which assets they will cover, and in many cases, they have internal ratios between different asset classes.
Our consultants have worked with many UK ABLs over the years and know which ones deliver and which don’t.