For businesses that have outgrown invoice finance or need more working capital than their sales ledger alone can support, asset based lending (ABL) is worth understanding. Unlike invoice finance, an ABL facility can draw against multiple asset classes simultaneously – stock, plant and machinery, and property alongside the sales ledger – meaning the total facility can be significantly larger. Below are five asset based lending companies currently operating in the UK market.
1. Novuna Business Cash Flow
Novuna Business Cash Flow is part of Mitsubishi HC Capital UK – one of the largest asset finance groups in Europe – with the ability to structure multi-asset facilities under a single provider relationship. Their asset based lending proposition sits alongside invoice finance, revolving credit, and asset finance under the same relationship, simplifying both the structuring conversation and the ongoing management of the facility.
Novuna’s offering is relationship-led, with clients assigned a dedicated relationship manager. Sector experience spans manufacturing, logistics, distribution, construction, and recruitment. Pricing is tailored to individual business circumstances and a full illustration of costs should be requested before proceeding.
Best for:
- Established UK SMEs looking for a multi-asset working capital facility under a single provider
- Businesses in growth, acquisition, or refinancing scenarios that want a relationship-led approach
- Companies that want ABL alongside invoice finance or asset finance without managing multiple lender relationships
2. Bibby Financial Services
Bibby Financial Services is one of the UK’s largest independent SME funders, managing over £6 billion in client turnover annually. Their ABL offering combines invoice discounting with asset finance, cashflow advance, and cashflow loans into a consolidated package. The cashflow advance can release up to 100% of the approved sales ledger alongside a core invoice finance facility, and their cashflow loan provides up to 20% of that facility – ranging from £250,000 to £1 million – to support acquisitions, refinancing, and growth. Bibby has over 40 years of experience across construction, logistics, manufacturing, recruitment, and wholesale.
Best for:
- UK businesses in the £1m+ deal space requiring a consolidated multi-product working capital solution
- Businesses pursuing acquisitions, MBOs, or restructures
- Companies that want a single funder across invoice finance and asset-based components
3. Shawbrook
Shawbrook is a specialist UK bank with a dedicated ABL team focused on the mid-market, with facilities from £5m to £50m covering debtors, stock, plant and machinery, property, and cash flow lending within a single structure. There are no collateral caps on property, with amortisation periods of up to 30 years and optional interest-only periods available. Structures are covenant-lite, based on asset value rather than financial covenants. Shawbrook was named Bank of the Year at multiple Insider Dealmakers Awards, including Midlands 2024 and Central & East 2025.
Best for:
- Mid-market businesses with transactions of £5m or more pursuing acquisitions, MBOs, MBIs, or significant refinancing
- Companies with substantial property or plant and machinery alongside their sales ledger
- Those that want a covenant-lite structure with flexibility on drawdown
4. IGF Group
IGF (Independent Growth Finance) is a pure-play ABL specialist operating since 1997, with over £600m in live facilities under management. ABL is their only business, which means structuring expertise and decision-making is entirely focused on asset-based facilities. Published advance rates: up to 90% on accounts receivable, up to 85% on inventory, and up to 75% on both plant and machinery and commercial property. Facilities range from £2m to £25m, with senior decision-makers involved from day one. IGF was named ABL Team of the Year at the Northwest Insider Dealmakers Awards 2025.
Best for:
- UK SMEs and mid-market businesses with funding needs between £2m and £25m
- Private equity-backed transactions and M&A scenarios where speed of decision matters
- Businesses looking for a pure-play specialist without bank credit committee delays
5. Skipton Business Finance
Skipton Business Finance is part of the Skipton Group and has been providing invoice finance and ABL for close to 25 years, with facilities from £3m to £25m. Advance rates: receivables up to 90% (minimum 51% of facility), stock up to 90% of net orderly liquidation value, plant and machinery up to 75% LTV on a five-year amortising term, property up to 75% LTV with up to 20-year amortisation, and cashflow loans up to £2m or 1.5x EBITDA on a 36-month term. Skipton is an accredited lender under the UK Government Growth Guarantee Scheme, backed by Skipton Building Society.
Best for:
- Mid-market UK SMEs in manufacturing, logistics, distribution, wholesale, and engineering
- Businesses pursuing MBOs, MBIs, acquisitions, or significant refinancing
- Those that want transparent, published advance rates and the backing of a UK mutual
What is asset based lending?
Asset based lending is a revolving credit facility structured around the combined value of a company’s assets rather than its profitability alone. The borrowing base is dynamic – as assets grow, so does availability. Assets typically used include the sales ledger (up to 90% advance rate), stock and inventory (up to 85–90%), plant and machinery (up to 75%), and commercial property (up to 75% LTV). Facilities are typically structured for businesses with turnover from around £5m upward, though minimums vary by provider.
Key questions to ask before proceeding
- Which asset classes will be included, and at what advance rates? This determines how much is actually available and how the limit moves as the business changes.
- How quickly can a decision be reached? Bank-backed lenders may require multiple committee stages; independent specialists often involve senior decision-makers from the first conversation.
- What are the exit terms? ABL facilities often carry minimum commitment periods and exit fees – understand the full cost before committing.
Conclusion
The five providers above cover a range of facility sizes, asset classes, and structuring approaches. The right fit depends on the size of facility required, the assets involved, and how much speed and senior access matters to the transaction. Most providers will produce a worked illustration without obligation.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any finance decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.
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