These lenders are almost the complete opposite to 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.
ABL’s will typically come up with a lending package with various debt products secured against property, stock, debtors and fixed assets.
Not all ABL’s are the same, they differ in which assets they will cover and in many cases they have internal ratio’s between different asset classes.
Our consultants have worked with many of the UK ABL’s over the years and know which one’s deliver and which one’s don’t.