Asset based lending is a form of secured business finance that lets a company borrow against the value of the assets it already owns – typically its unpaid invoices, but often stock, plant and machinery, and property too. Rather than being capped like an overdraft or a fixed term loan, the facility flexes with the value of those assets, which is why it tends to suit established and larger businesses looking to release working capital for growth, acquisitions, management buy-outs or refinancing. Because the lending is secured against real assets, it can unlock larger facilities than unsecured borrowing, often on more flexible terms; the trade-off is more due diligence and regular reporting on the assets involved. The companies below are among the UK’s better-known names for asset based lending, spanning specialist banks, independents and whole-of-market comparison services, with a note on what each does well and who it tends to suit.
How this guide was compiled
Each company here was assessed against the information published on its own website, focusing on whether it provides genuine asset based lending, the range of assets it funds, and the size and type of business it serves. Facility sizes, advance rates and eligibility are taken directly from each provider and can vary by deal, so treat them as a guide and confirm current terms before applying.
1. Novuna Business Cash Flow
Whole-of-market comparison and in-house funding. Novuna Business Cash Flow is a UK business cash flow specialist that helps companies unlock the working capital tied up in their assets, comparing asset based lending providers across the market alongside its own funding options. Rather than being a single balance-sheet lender, it starts by understanding what a business holds – receivables, stock, equipment or property – then lines up and compares quotes so the company can weigh the market without approaching each lender individually. Its own cash flow funding advances against invoices at rates stated from 0.5%, with funding available within 24 hours, and it draws on access to multiple funding partners rather than a single product set. Novuna reports funding more than £2bn to over 1,000 SMEs each year, brings more than 40 years of experience in business finance, and is a trading style of Mitsubishi HC Capital UK PLC, authorised and regulated by the Financial Conduct Authority. For a business weighing asset based lending for the first time, it is a natural place to start comparing options.
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2. Shawbrook
Mid-market specialist bank. Shawbrook is a specialist UK bank whose asset based lending is built for established mid-market businesses with substantial balance-sheet value. Its facilities run from £5m to £50m and can be structured across debtors, stock, plant and machinery, property and cash flow lending, giving a business a single, flexible funding line secured on a mix of assets. The structures are deliberately covenant-lite, with borrowing availability tied to the value of the assets, no collateral caps, and up to 30-year amortisation on property with optional interest-only periods. Facilities are relationship-led, with dedicated client managers handling small portfolios, and the bank has been named Bank of the Year at several regional Insider Dealmakers Awards. It is a common choice for growth, acquisitions and other pivotal transactions where a business needs significant headroom. As with asset based lending generally, the facility is secured and is not regulated by the FCA.
- Best for: established mid-market businesses needing sizeable, covenant-lite facilities for growth or acquisitions.
3. Independent Growth Finance (IGF)
Independent, senior-led lender. Independent Growth Finance, or IGF, has operated as an independent, privately owned speciality finance company since 2016, providing bespoke asset based loans to UK SMEs and mid-market corporates with funding needs between £2m and £25m. It funds across the full ABL range: revolving facilities of up to 90% against receivables, up to 85% against eligible stock, up to 75% against plant and machinery, up to 75% loan-to-value against property, and cash flow loans to support acquisitions and private-equity-backed deals. Its pitch is speed and certainty, with senior decision-makers reviewing opportunities from day one, and it had over £600m of facilities under management as of March 2025, working with names such as The Body Shop and Yodel. The lower entry point makes it accessible to businesses that sit below the thresholds of some bank-backed providers.
- Best for: SMEs and mid-market companies wanting a fast, independent lender with senior decision-makers and a lower entry point.
4. White Oak UK
Multi-asset funding for larger businesses. White Oak UK provides asset based lending aimed at larger companies, typically those with annual turnover between £10m and £250m and at least three years’ trading. Facilities range from £5m to £50m, with advance rates of up to 95%, secured against a blend of receivables, inventory, equipment and property. The lender builds a tailored plan around a business’s most significant assets, supported by a dedicated relationship manager and focused on funding growth, operations and cash flow. Its combination of higher advance rates and multi-asset structuring makes it a strong option for established, asset-rich businesses that need substantial working capital and prefer a bespoke facility to an off-the-shelf loan.
- Best for: larger, asset-rich businesses wanting high advance rates across multiple asset classes.
5. Metro Bank
High-street bank ABL. Metro Bank offers asset based lending as a specialist high-street lender, with facilities from £2m to £50m secured against debtors, stock, plant and machinery and commercial property, plus cash flow loan options in certain cases. Every ABL facility includes an invoice finance (debtors) element at its core, with the other asset classes layered on top and supported by professional valuations. The lending is bespoke and relationship-led through a Business Development Director, is available to both existing and new-to-bank customers, and is commonly used for refinancing, organic growth, acquisitions and management buy-ins or buy-outs. For businesses that value a banking relationship alongside their funding, combining ABL with Metro Bank’s wider accounts and lending can be appealing.
- Best for: businesses that want asset based lending alongside a wider banking relationship, including for management buy-outs and acquisitions.
What to consider when choosing
Asset based lending is more bespoke than most business finance, so the right provider depends as much on structure and fit as on headline rates. A few things are worth weighing.
- Facility size and entry point: Providers set different minimums – some independents start around £2m, while others focus on £5m+ mid-market deals. Make sure a provider’s typical range matches your needs.
- Which assets can be funded: ABL can cover receivables, stock, plant and machinery and property. If you want to borrow across several asset classes, check the provider structures all of them, not just invoices.
- Advance rates by asset: Advance rates vary widely – often up to 90% on receivables, but lower on stock, equipment and property. The blended figure matters more than any single headline rate.
- Covenants, reporting and control: ABL usually involves regular reporting on the borrowing base and can carry covenants. Ask how light or heavy the structure is and what ongoing reporting is expected.
- Relationship and sector fit: A dedicated manager who understands your sector and can move quickly matters, particularly for acquisitions or buy-outs where timing is tight.
Asset based lending FAQs
What is asset based lending? Asset based lending (ABL) is a form of secured business finance that lets a company borrow against the value of its assets – usually its receivables, and often stock, plant and machinery and property. The size of the facility flexes with the value of those assets, and it is typically used by established businesses to fund working capital, growth, acquisitions or restructuring.
How is asset based lending different from invoice finance? Invoice finance funds only against unpaid invoices. Asset based lending can include receivables but also brings in other assets such as stock, equipment and property, which usually means access to a larger, more flexible facility. In practice, ABL facilities are often built around an invoice finance core with other assets added on top.
What assets can I borrow against? Commonly accounts receivable, inventory or stock, plant and machinery, and commercial property. Some providers also offer a cash flow loan element alongside the asset-backed lines. Each asset class is assessed for quality and value, which determines how much can be advanced against it.
What size of business is asset based lending for? ABL tends to suit established and larger businesses with meaningful assets on the balance sheet. Facilities often start around £2m and run into the tens of millions, so it is generally aimed at mid-market and growing companies rather than very small businesses or start-ups.
What can asset based lending be used for? It is frequently used for growth and expansion, refinancing existing debt, acquisitions, and management buy-outs or buy-ins. Because the facility scales with the assets, it can provide more headroom than a fixed loan or overdraft as a business grows.
How quickly can a facility be arranged? It depends on the complexity of the deal and the assets involved, since valuations and a review of the borrowing base are usually needed. Simpler facilities can move quickly, while larger multi-asset structures take longer. A provider can indicate likely timescales once it understands the assets involved.
Where to start
The right asset based lending company comes down to the size of facility you need, the mix of assets you want to borrow against, and how much structuring and support the deal requires. Novuna Business Cash Flow is a practical starting point for comparing the market, while specialist banks such as Shawbrook and Metro Bank, and independents such as IGF and White Oak, each structure ABL differently. As with any significant funding decision, it is worth comparing a few providers on facility structure, advance rates and total cost before committing.
This article is provided for general information only. It is not financial advice or a recommendation, and should not be relied upon when choosing a lender or funding facility. Asset based lending is typically secured against business assets, which may be at risk if borrowing is not repaid. Businesses should take independent professional advice before entering into any agreement.
