The aim of a business contract is to try to provide certainty for both parties.
One80 regularly advise UK corporates on a wide range of funding requirements
Asset based lending (ABL) provides the cash injection needed to implement specific growth plans, support acquisitions, or provide further working capital and cash flow.
Leveraging balance sheet assets to secure funding provides organisations with fast access to working capital. The collateral provided for this type of lending tends to be inventory, invoices, or fixed assets such as plant and machinery. As such, certain sectors such as transport and logistics, wholesale, manufacturing and engineering, construction, and recruitment have a greater ability to secure such funding.
The One80 team has relationships with a wide range of asset based lenders and is able to assist you to identify the lenders best suited to your unique circumstances. We will then support you throughout the application stage.
The most common products our experienced team advise on are:
Invoice factoring and discounting offers a borrowing facility based on the value of outstanding invoices. Lenders offer scalable facilities so that when sales increase, so does the amount available to you for borrow.
A factoring company will purchase the sales ledger and will typically provide between 70% and 80% of the total amount outstanding. Once the invoices have been settled in full, the remaining proportion is paid, minus the factor’s fees.
Invoice discounting works in a similar way, but is confidential, so that you may retain control of the sales ledger and customers remain unaware that the company is being funded in this way.
Releasing the capital tied up within your inventory, regardless of the stage of production, provides working capital needed for expansion, acquisitions, management buy-outs, or management buy-ins.
Fixed assets which are owned outright by the business can be used to obtain funding for growth or to provide greater operational cash flows. Assets commonly used in this way include vehicles, plant, and machinery.
A fixed rate of interest is applied to the facility upfront, which is helpful from a budgeting perspective.
Asset based lending is beneficial when rapid growth uses up too much working capital or to help fund fixed asset purchases. It is perceived as low risk by lenders and will provides a cash injection needed to help general cash flow, restructure, carry out acquisitions, or implement specific growth plans.
OUR TEAM REGULARLY ADVISES ON A RANGE OF OTHER PRODUCTS INCLUDING:
- Export finance
- Recruitment finance
- Construction finance
- Selective invoice finance