05 Dec 2019 | 09.39 am
Guest Blog: Paul Stephens, Close Brothers Commercial Finance
“Asset based lending is often regarded as a strategic management tool”
05 Dec 2019 | 09.39 am
Awareness of asset based lending (ABL) has been growing steadily for some time. It has long since been a feature of business finance in the US, and multi-million pound deals have become increasingly common in the UK in recent years. Now, it’s being identified as a viable lending solution in Ireland too, writes Paul Stephens of Close Brothers Commercial Finance.
Since we started offering asset based lending, its popularity has increased significantly, and Close Brothers Commercial Finance is now the largest provider on the island. We work closely with financial advisors, accountants and independent businesses to provide multi-asset funding solutions, with large facilities already being drawn down.
Our ABL proposition is simple. It provides higher levels of funding for mid-to-large companies by blending invoice finance with funds released against other business assets. We lend against a wide range of assets, including property, plant and machinery, and stock. We can also augment this offering with cash flow loans for companies with a history of strong cash generation and positive forecasts.
Predictable Cash Flow
As ABL products are dependent on asset values, they can provide better financial stability and more predictable cash flow. By securing your borrowing against existing business assets, we help you to ensure that your funding structure is manageable and has longevity.
For many of the businesses we work with, asset based lending gives them a competitive advantage. It’s often regarded as a strategic management tool, enabling businesses to complete acquisitions, MBOs and MBIs, as well as refinancing non-traditional lenders. It can also be used to provide access to additional working capital, and grows in line with turnover, giving you more flexibility.
We don’t shy away from complex transactions. We routinely work with other lenders and private equity houses to help businesses leverage the right solution for them. Since we opened in Dublin over ten years ago, we have been leading the way towards more sustainable funding for Irish SMEs, and our aims regarding asset based lending are the same. We are continually focused on providing the most sophisticated and commercially worthwhile deals possible.
All of our solutions are designed to support you over the long-term, being both financially maintainable and flexible enough to adapt with your requirements. With offices in Dublin, Belfast, Cork and Galway, and a wider team situated across Ireland, we are able to share our expertise regarding funding with more people than ever before. We offer invoice finance, asset finance and asset based lending with a core goal of helping businesses succeed.
Visit our website to find out more: www.closecommercialfinance.ie