Introduction to Asset Financing
Asset Based Finance is a form of raising funds for businesses. It is the general term used to describe products such as factoring, invoice discounting and other lending against business.
Asset Based Finance is the lending of funds against invoices, stock, property, plant and machinery intellectual property and brands. Asset Based Finance is should be considered as way to fund the business cycle. Asset Based Finance is a common alternative to other forms of lending are contracted. Asset Based Finance is not highly leveraged or highly structured Asset Based Finance is transparent and secured
Asset Based Finance provides flexible funding solutions based upon a range of corporate assets where the amount of funding available fluctuates with the value of the asset concerned. Asset Based Finance solutions against current assets (invoices and stock) are revolving facilities with no fixed period. Specifically Asset Based Lending packages that include advances against fixed assets may include an element of fixed term loans.
Asset Finance or Asset Backed Finance, such as leasing and HP, would normally be used to fund fixed assets. Loans for a set amount, determined by the value of the funded asset, are amortised over a fixed period through a series of regular installments.
For more information about the industry please see The Asset Based Finance Association (ABFA) formerly known as the FDA, is a UK based trade association representing an industry with forty years experience of supplying much needed liquidity to UK businesses. Its Members provide Factoring, Invoice Discounting and Asset Based Lending.
Key Points of Asset Based Lending
- Asset Based Lending provides funding against a range of corporate assets including invoices, stock, plant and machinery, property and cashflow loans
- Asset Based Lending is an excellent tool for management information
- Asset Based Lending can be disclosed or undisclosed
- Asset Based Lending is a common alternative finance method for financially mature, multi-national, and global corporations
- Asset Based Lending provides a cashflow solution for strategic purposes, such as an MBO/MBI, refinancing or rapid Expansion
- Asset Based Lending is a flexible financial solution that grows and diminishes in line with the business
For more information and to compare asset financing quotes please call 0800 597 4757 or apply online.
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The UK Factoring & Invoice Discounting Helpline is a leading finance brokerage specialising in factoring and invoice discounting. We offer free, independent and impartial advice on business finance options. We have been helping businesses of all sizes and commercial sectors solve cashflow problems for more that 10 years. We have found factoring and invoice discounting facilities for many thousands of businesses and remain in contact with all our clients.