Leverage Your Assets for Growth with Asset-Based Lending in Tamworth
Enhance Your Business Funding with Asset-Based Lending in Tamworth from Navigate Commercial Finance
Asset-based lending in Tamworth is a powerful financing solution that allows businesses to leverage their assets to secure necessary capital. This approach is ideal for companies looking to fund growth, M&A activity, MBO’s or MBI’s or simply support day to day working capital without diluting equity. At Navigate Commercial Finance, we specialise in securing tailored asset-based lending solutions that align with your strategic plans. Asset-based lending is increasingly valued for its flexibility and resilience during economic uncertainty.
Understanding Asset-Based Lending in Tamworth
Asset-based lending utilises business assets such as receivables, inventory, or plant and machinery, as collateral to generate flexible lending solutions. This type of financing is particularly beneficial for businesses that need to improve liquidity or finance expansion plans but may not qualify for more traditional lending due financial performance or sector challenges. Asset-based lending can support your business in the following ways:
Increased Funding Access: Unlock significant funding based on the value of your assets, which might otherwise be inaccessible through conventional unsecured loans.
Improved Cash Flow: By converting fixed assets into working capital, you can manage operational costs more effectively and take advantage of growth opportunities.
Flexible Terms: Asset-based loans can be structured with more flexible terms than traditional loans, providing your business with the headroom it needs to thrive.
By using assets strategically, businesses can turn fixed resources into working capital to enhance operational resilience and fund sustainable growth.
Typical Asset Types in Asset-Based Lending in Tamworth and Industry Applications
Asset-based lending works across many sectors by using diverse asset types:
Inventory: Wholesalers and manufacturers can leverage inventory to boost cash flow, especially during peak seasons.
Receivables: In industries with longer payment cycles, receivables can support cash flow for smoother operations.
Machinery and Equipment: Manufacturers can refinance plant and machinery via a term loan to support investment in expansion and research and development.
Real Estate: Owned properties can provide stable, long-term funding options for large-scale projects or expansion.
Cash flow: Based on the financial performance of your business, lenders can provide a cash flow loan as part of a blended ABL structure to support your working capital requirements.
Case Study: Asset-Based Lending
The Brief
Working with a long-established audio-visual wholesale business who import TV stands, wall brackets, speaker brackets from China and supply to blue-chip retailers in UK, Europe and the US. A new blended funding facility was required to support the wholesales growth plans, enhancing its ability to meet increasing demand across Worldwide markets and strengthen its operations into Europe.
Challenge
The company was introduced to Navigate Commercial Finance by their corporate finance advisor who has limited knowledge of the ABL finance arena. On meeting the business, the issue was clear, the company wanted to expand its product offering and expansion across mainland Europe however were hampered by their incumbent funder’s facility parameters.
Solution
On review of the businesses integrated cash flow forecasts that were underpinned by a strong order book, Navigate Commercial Finance approached an ABL funder who could offer cash flow loans alongside its Invoice Finance facility. These blended solutions would give the business the injection of funds needed to ramp up stock purchases in order to meet increased demand.
Funding Process
With a deep understand of the Asset Based Lending market, Navigate Commercial Finance were able to pinpoint the right funder who would have appetite to support the growing export nature of the business, where other invoice finance funders can have restrictions. The funder also had the capability to provide cashflow loans. The new funding package hit the brief and Navigate Commercial Finance ensured the transfer to the new lender happened in a timely manner.
The Outcome
With the new extended funding facilities in place, the business has the firepower to maximise their European expansion plans. This underpins the power of working with the right outsourced commercial finance team who understands the funding market and your strategic plans.
“Asset Based Lending is a flexible way for businesses to unlock cash tied up in their assets enabling them to meet their strategic plans, whether growth, acquisition, M&A or simply ease day to day working capital challenges. It’s vitally important that businesses secure the right funding partner that is aligned to their borrowing requirements now and in the future. Using an experience outsourced commercial finance team who understand lender nuances can help achieve this in a timely manner”
Paul Varley, Managing Director, Navigate Commercial Finance
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Tamworth Business Landscape
Key industries in Tamworth, such as logistics, manufacturing, and haulage, are among the top sectors seeking business finance in the UK. These sectors often contact Navigate Commercial Finance requiring asset-based lending for fleet expansion, new equipment purchases, and property acquisition.
Tamworth, like many parts of the UK, has a strong presence of small and medium-sized enterprises (SMEs). As of 2023, SMEs account for over 99% of all businesses in the UK, employing around 16.7 million people, which is about 61% of all private sector jobs. This shows the vital role SMEs play in the local economy.
Other Business Funding Solutions in Tamworth
Term Loans
Ideal for capital injection resulting in defined repayment schedules.
Revolving Credit Facilities
Maintain flexible access to funds to support your businesses working capital needs.
Invoice Factoring
Convert outstanding invoices into immediate cash flow.
Equipment Financing
Purchase or lease equipment without a large upfront cost.
The Navigate Commercial Finance Advantage
At Navigate Commercial Finance, our approach is centred around understanding your business and tailoring financial solutions that align with your specific goals. With our extensive network of lenders, wealth of experience and commitment to ongoing support, we ensure that your business has the financial tools it needs to meet your strategic plan. Whether you’re looking to expand, manage cash flow, or explore new opportunities, we’re here to help you make informed, confident decisions every step of the way.
Tailored Solutions: We understand that each business is unique, and that business is not always black and white. Our network or pragmatic Asset-based lending providers structure their solutions to meet your business working capital requirements and strategic funding plans
Expert Guidance: Our team of specialists provides knowledgeable advice to help you navigate the complexities of asset-based lending and ensure that you choose the most suitable financing structure.
Key Stakeholder Relationships: We leverage key stakeholder relationships to ensure quick decision are made from those that make them
We will guide you through the process and project manage through to completion to ensure your deadline is achieved.
FAQs about Asset-Based Lending in Tamworth
Q: What types of assets can be used as collateral for Asset-Based Lending in Tamworth?
A: Common assets include inventory, accounts receivable, equipment, real estate and financial viability.
Q: How does Asset-Based Lending in Tamworth differ from other types of business loans?
A: Unlike unsecured loans that have fixed monthly repayments, asset-based lending provides a blend of revolving credit lines coupled with fixed monthly repayments typically resulting in larger amounts of capital released and more flexible terms offered.
Q: Is Asset-Based Lending in Tamworth suitable for all businesses?
A: It is particularly advantageous for businesses with substantial physical assets and a need for working capital to support operations or growth initiatives.
By partnering with Navigate Commercial Finance, you gain access to bespoke asset-based lending solutions that empower your business to leverage its assets effectively. Contact us to enhance your business’s financial flexibility and fuel your growth ambitions.
Take the Next Step
Empower your business with the right funding . Contact Navigate Commercial Finance today to discuss your funding needs .