Asset Based Lending
For businesses that want to improve cash flow to support organic growth and acquisition plans*.
Ready to unlock your business's cashflow?
Whether you’re already banking with us or not, you can speak with our team about your Asset Based Lending requirements.
Get started with Asset Based Lending
Set up a call with our team
Already have Asset Based Lending?
Access and manage your facility online
*T&Cs and eligibility criteria apply. Subject to credit approval. Security may be required. The interest rates in this product are variable which means the rate can go up or down form time to time. Download our Asset Based Lending IIS (PDF) for more details.
Any property or asset used as security may be at risk if repayments are missed for any debt secured on it.
Charges may apply for any default on payments.
We may share account performance information with credit reference agencies.
What is Asset Based Lending?
With Asset Based Lending (ABL) you can borrow against the value of your balance sheet to free up funds to support your business goals. Lending facilities can be provided against invoice finance (debtors), inventory (stock), plant and machinery (P&M), and property.
Additional cashflow loans are available to support management buy-outs (MBO) or management buy-ins (MBI) and business acquisitions.
All ABL facilities must include an Invoice Finance (debtors) element, but ABL gives you additional options to access funding. A minimum facility of £2 million applies.
Key features of Asset Based Lending
Free up capital with a funding solution that can be used for working capital and growth financing, refinancing existing facilities, business expansion or to complete an MBO/MBI or acquisition.
Flexible facility to meet your needs
Flexible structures across invoice discounting, stock, plant and machinery, commercial property and cash flow loans.
Funding level tied to asset value
Funding grows as the value of your assets increase with invoice discounting and stock providing on a revolving facility basis, and term loans on P&M, property and cashflow loan. A minimum facility of £2 million applies.
Flexible contract terms
Contracts are designed around the needs of your business. Contracts typically run from 1-5 years, depending on your needs. Renewal of the facility is subject to credit review and approval.
Benefits of Asset Based Lending with Metro Bank
- Dedicated team – access to a named Relationship Manager
- Cost-savings – by paying suppliers early you could secure discounts
- Flexible – suitable for a range of funding requirements, including working capital and acquisitions
- Free up capital - utilise all the assets on your balance sheet to support your business plans
- Convenient - all facilities provided by one lender seamlessly
Asset Based Lending options
Invoice discounting (Debtors)
Release up to 90% of the value of your accounts receivable*, providing an immediate cash injection and then a revolving facility that builds and grows as you do.
Inventory (Stock)
Make the most of your stock. We can advance up to 85% of the eligible value of stock on a revolving basis*.
Plant and machinery
We can advance up to 80% of the value of your existing plant and machinery with a term loan over three to five years*.
Commercial property
We offer advances of up to 70% of the value of your commercial property to fund the growth and expansion of a business, over terms of up to 20 years.
Cash flow loans
Whether it’s for management buy-outs or buy-ins, acquisitions or general expansion, ABL has additional lending options that may be suitable.
*T&Cs and eligibility criteria apply. Advanced rates for each asset class will be agreed on case-by-case basis and are subject to review.
Do you work in these industries?
For more industry specific needs, our team has experience of working with a wide range of businesses over many years.
Manufacturing
Manufacturing businesses often require substantial capital for purchasing raw materials, maintaining equipment, and managing operational costs.
Looking for a team that understands your requirements?
Engineering
Engineering businesses often require significant capital for the procurement of specialised equipment, research and development, and managing day-to-day operational costs.
Looking for a team that understands your requirements?
What you need to know about Asset Based Lending
What does it cost?
Invoice Finance (Debtors)
A charge is payable on the amount of money advanced on a daily basis. This is called a discount fee. A variable rate charged over Metro Bank Base Rate (variable)
There's also a service fee. Either a variable fee, based on a percentage of gross sales (including VAT), when invoices are assigned or a Fixed Monthly Fee, charged at the end of each month.
For the operation of the Invoice Finance facility certain Disbursements can feature.
Inventory (Stock)
Monitoring Fee. A Fixed Monthly Fee, charged at the end of each month, (individually negotiated).
Interest. A variable rate charged over a Metro Bank Base Rate (variable)
We charge the interest daily on the balance outstanding on your account.
P&M, Commercial Property and Cashflow Loan
A rate of interest based on the amount of the loan outstanding. A variable rate charged over Metro Bank Base Rate (variable). We charge the Interest daily on the balance outstanding on your account.
Facilities provided against Inventory, P&M and Commercial Property assets will require a professional valuation, paid for by yourselves. Any subsequent valuations required will also be at your cost.
Initial arrangement fee
Individually negotiated.
Facility Increase Fee
Individually negotiated.
Annual Fee
Individually negotiated.
Documents we need to to provide a facility
Depending on the assets being financed, we will normally look for the following information:
• Aged Debtors and Creditors
• Latest Audited and Management Accounts
• Financial Forecasts
• Stock Listing
• Fixed Asset Register
• Professional valuations will be required on Stock, P&M and Property assets, which will be arranged after Indicative Terms have been agreed.
How long does it take to put Asset Based Lending in place?
It will depend on the complexity of the deal. Your Business Development Director will inform you on likely timescales.
What happens if an invoice is not paid?
If an invoice is not paid within the agreed period (typically 90-120 days) then you would repay us directly.
Is the service fee paid on a weekly/monthly/annual basis, or for each invoice received?
This depends on the type of facility and if fees are variable or fixed. For fixed fees, the service fee can be charged monthly. Your Business Development Director will discuss this with you.
Do I need a Metro Bank Business Account?
Whether you’re an existing business bank account customer or not, you can set up a call with our team to talk through your business’s asset-based lending requirements.