The white paper, titled Unlocking Capital: Strategic Advantages of Asset-Based Lending, explains how ABL is now supported by the British Business Bank through the Growth Guarantee Scheme (GGS).
Asset-based lending is comprised of a combination of two or more types of finance that together achieve the overall funding package required. Compass said the result is often access to significantly higher levels of working capital than conventional methods of funding.
It can also be useful for raising working capital for restructuring, acquisitions, management buyouts (MBOs), and management buy-ins (MBIs).
The ABL variant allows an increased percentage of loan to value (LTV) against key assets, combining the benefits of the existing term loan, revolving credit facility, invoice finance, and asset finance variants of the scheme.
The white paper also highlights how ABL has been instrumental in the growth and success of a number of businesses.
Case studies in the report include Browns Print in Manchester, which was acquired by chairman Tim Guest. He used a mixture of private funds and an ABL facility including a loan and asset finance to refresh the plant in the factory.
Also featured is how the investment team at Affinity Packaging – formed from a buyout of Leyprint in 2014 – settled on a mix of invoice finance, asset finance, property, a term loan, and deferred consideration funding.
Compass director David Bunker said: “Central to getting the most from an ABL facility is finding the right lender. Since Compass’s inception in 2005, we’ve been coming alongside businesses as they select which finance product is right for them and accurately matching lenders and customers.
“As a lender ourselves and a broker to over 25 banks, we are able to put customers’ needs at the forefront of arranging an ABL facility. This white paper provides an overview of the funding options to choose from and some examples of how businesses have thrived after having identified their perfect mix.
“Compass Business Finance can be there from first contact to journey with you throughout the process.”
