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What Is Asset Based Lending?

Asset based lending, also referred to as commercial finance, is a type of loan available to businesses that involves offering a business' assets as security to the lender. There are numerous ways to provide security from assets, but generally, assets that are deemed appropriate are a business’s accounts receivable, inventory or equipment/machinery.

Asset based lending is a fantastic financial solution available to businesses, as the loan is given on the premise that the value of the assets is pledged as collateral. The type of assets pledged by a borrower will determine the terms and conditions set by the lender.

This type of lending is great for businesses as it allows them to access the funds they need to reach their growth potential by leveraging the assets that are tied up in their business. Asset based lending facilitates businesses in meeting their strategic goals and is also ideal for use in turnaround situations or to navigate challenging scenarios as there is no need to take on extra debt.

Asset based lending has become huge within the finance industry and asset-based finance products have been solving the challenges faced by UK businesses for decades.

Nucleus Commercial Finance offer flexible, transparent and hassle-free funding to businesses that need access to extra cash to meet their strategic plans. Our asset-based lending solution has allowed businesses to continue operating smoothly, in times when they previously could have failed without the vital funding we provided.