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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.

Information Message

Security may be required. Product fees may apply. Subject to status, business use only.

 

Receivables

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

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
Information Message

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
Information Message

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
Information Message

Why NatWest?

  • 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 diverse >£3.0bn 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 NatWest could support you, contact us today:

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

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

Cleveland Containers Ltd

GBP 45,000,000 Asset Based Lending

Working Capital Facilities

Arranger

August 2023, UK

Information Message

Cleveland Containers Ltd

Undisclosed Working Capital Facilities

Arranger

August 2023, UK

Information Message

Thomas Holdings (North West) Limited

GBP 125,000,000 P&M Secured ABL Facility; GBP 10,000,000 CID Facility

P&M Facility Agent

August 2022, UK

Information Message

European Metal Recycling Limited

GBP 200,000,000 Asset Based Lending Facility

Lender

January 2024, UK

Information Message

4Syte Funding Limited, 4Syte ABL Limited

GBP 45,000,000 Back to Back ABL

Bilateral

September 2022, UK

Information Message

Kelling Group Limited

GBP 137,000,00 P&M Secured ABL Facility

Lender

August 2022, UK

Information Message

Ferovinum Limited

GBP 40,000,000 Inventory Facility & Receivables Facility

Sole Lender

May 2023, UK

Information Message

LWC Drinks Ltd

GBP 30,000,000 Invoice Discounting Facility. Acquisition and Working Capital

Arranger

August 2023, UK

Information Message

LWC Drinks Ltd

Undisclosed Acquisition and Working Capital

Arranger

August 2023, UK

Information Message