Growth of Asset Based Lending (ABLs)

We take a look at the growth of the Asset based lending (ABL) market, and how this form of lending is increasingly being used to provide finance for asset rich companies.

At a glance:

  • Asset based lending (ABL) provides the borrower with a revolving credit facility secured against its balance sheet assets including both working capital and tangible fixed assets.
  • Since 2006, we have seen the Asset Based Lending (ABL) market grow by 33%.
  • ABL is particularly suited to finance asset rich companies facing a transaction, significant investment or volatile funding requirements.
  • It is also a useful tool in restructuring situations where cash generation may be limited, but the balance sheet and asset base are relatively flat. In this scenario, it can provide a stable funding package for the business whilst it focuses on cost reduction, efficiency and operational improvements.
  • We are increasingly seeing ABL being deployed as part of wider package alongside senior lending, mezzanine loans and trade finance.

Restructuring Trends - Growth of ABLs

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Jeremy Webb


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