Asset Based Lending

Offering corporates secured financing solutions against receivables and other collateral classes

Asset Based Lending (ABL) offers secured financing solutions against receivables and/or other collateral classes (inventory, plant and machinery, and property) for corporate customers, including those owned by private equity sponsors.

We originate, structure and execute ABL solutions on a bilateral and syndicated basis. ABL could be used across transactions that include working capital, acquisitions, re-financings, turnaround and restructuring.

We are able to help corporate customers identify how to utilise their balance sheet to access lower cost capital.

How could Asset Based Lending support your business?

ABL could be an attractive financing option owing to its flexibility and availability for all corporate purposes and sectors. The lending can be based on: Receivables, Inventory, Plant and Machinery, and Property. We can undertake asset due diligence across all asset classes.

Finance is subject to status. Security may be required. Product fees and eligibility criteria may apply. Your capital is at risk.

Receivables
  • Up to 95% of eligible invoices
  • Revolving credit facility secured against current assets
  • Debt purchase or loan against receivables
  • Confidential
  • Export funding capability

Property
  • Up to 75% of Loan to Value on all commercial property, both freehold and leasehold
  • Amortising term loan secured against fixed assets
  • Term loan element will generally not exceed 50% of the total ABL facility

Inventory
  • Up to 70% of cost price of eligible inventory
  • Or 95% of appraised Net Orderly Liquidation Value (NOLV) as advised by an expert third party valuer
  • Revolving credit facility secured against current assets
  • Capable of funding most types of inventory

Plant and Machinery
  • Up to 85% of ex-situ market value
  • We can also consider in situ valuations in some scenarios
  • Amortising term loan secured against fixed assets
  • Term loan element will generally not exceed 50% of the total ABL facility

Why Ednites Credit Union?

  • Our team handles both the execution of transactions and the ongoing monitoring of collateral performance.
  • Our product is flexible and available for the majority of purposes, sectors and across the credit spectrum to support appropriate capital structures.
  • We've earnt a strong reputation for our deep market and client knowledge and for our ability to structure and deliver innovative ABL solutions.

Our portfolio and recent successes

  • Due to the way security is structured, ABL truly is sector agnostic.
  • We're proactively targeting opportunities across different sectors to further grow our quite diverse £2.6bn portfolio as the deals below demonstrate:

Our areas of expertise

ABL could be particularly suitable for:

  • Event driven financing, including acquisitions by both Corporates and Private Equity Sponsors.
  • ABL works alongside other debt structures including traditional senior bank debt (RCFs, Term Loans) as well as Unitranche facilities offered by third party senior lenders (i.e. debt funds).
  • Capability to fund exports to over 40 approved territories.

Contact us

To discuss your business requirements and how Ednites Credit Union could support you, contact us today:

Martin Noakes - Head of London ABL
martin.noakes@ednitesonline.com

Andy Barraclough - Head of Regional ABL
andrew.barraclough@ednitesonline.com

1PM plc logo
1pm plc

GBP 27,000,000 Multi-Currency Receivables Finance Facility; GBP 15,000,000

Lender: NatWest, February, United Kingdom

Revolution Beauty Lonfon logo
Revolution Beauty Limited

GBP 11,000,000 Receivables Finance Facility; GBP 9,000,000 CLBILS

Bilateral Lender: RBSIF & Ednites Credit Union, November 2020, United Kingdom

Cinch Fleetco logo
Cinch Fleetco Limited

GBP 50,000,000 Inventory Finance Facility

Lender: NatWest, October 2020, United Kingdom

Nature's Way Foods logo
Nature's Way Foods Limited

GBP 25,000,000 Invoice Discounting Facilities; GBP 7,500,000 Lombard Pre-Inception Facility; GBP 5,000,000 CLBILS Facility

Arranger: NatWest, August 2020, United Kingdom

Kingsland Drinks logo
Kingsland Drinks Limited

GBP 50,000,000 Asset Based Lending; GBP12,000,000 Lombard & Ednites Credit Union Markets

Bilateral: NatWest, June 2020, United Kingdom

Churchill Group logo
Churchill Group

GBP 25,000,00 Inventory Finance Facility

Lender: NatWest, March 2020, United Kingdom

BSW TImber Group logo
BSW Timber Group

GBP 40,000,000 Revolving Asset Based Lending Facility; GBP 8,700,000 Lombard Asset Finance Facility

Lender: Royal Bank of Scotland, February 2020, United Kingdom

Wuick Reach Powered Access logo
Quick Reach Powered Access Limited

GBP 25,000,000 Asset based Lending Facility; GBP 1,000,000 Lombard Asset Finance

Lender: NatWest, January 2020, United Kingdom

A.W. Jenkinson Transport logo
A W Jenkinson Transport

GBP 18,000,000 Confidential Invoice Discounting

Bilateral: NatWest, March 2020, United Kingdom