Embattled businesses explore loan options
Businesses turn to asset-based lending as an alternative way to access cash
Businesses turn to asset-based lending as an alternative way to access cash
Asset-based lending is becoming an increasingly popular form of financing, as
businesses look for alternative ways to access cash.
Specialists in asset-based lending, including GE Commercial Finance and
Burdale Financial, securitise debt against physical assets such as machinery.
Large clearing banks do offer forms of asset-based loans, but specialist
asset-based lenders will offer finance to groups that the leading banks would
not.
Burger and frozen food manufacturer Canterbury Foods, which was deep in
administration with little hope of recovery at the start of the year, is one of
the latest companies to use an asset-based loan
The group was unable to agree refinancing terms with its existing bankers,
despite attempts to reduce external debts with the sale of its meat products
division to Tranfield Foods.
The group’s management team eventually formed a buyout vehicle called Medway
Foods, which secured a £7m asset-based loan from GE Commercial to purchase
Canterbury’s frozen pastry division and save 220 jobs.
Harvey Hoogakker, assistant director of debt advisory at Ernst & Young,
said that because asset-based lenders were ‘financial offshoots of big
industrial companies their knowledge of the inherent value of assets was
better’.
Tim Ainsworth, commercial director at GE Commercial, said asset-based lenders
were now syndicating loans to secure even bigger finance deals.
‘The market is growing because of syndicating transactions, particularly for
cross-border, pan-European deals,’ he said.
The numbers you crunch tell a story. Your expertis...
18yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleWe all understand the role of lawyers in an arbitration, to argue over points of liability and who was at fault. But most commercial cases are brought...
View articleAn anonymous corporate finance veteran with over 20,000 hours of experience unlocks invaluable insights by pulling back the curtain on the rarely seen...
View articleThe UK's National Living Wage increase to £11.44/hr demands significant adjustments in payroll and reporting for accountants, impacting compliance, fi...
View articleThis regulatory update aims to simplify the reporting process, reduce administrative burdens, increase accuracy, and provide real-time reporting capab...
View articleTechnology could enable this by allowing teams to 'speak the same language' Read More...
View articleBegbies Traynor had a strong first half to its year, buoyed by increased revenue and a number of acquisitions Read More...
View articleRicky Shankar, Chairman of Clear Factor, explains how his own experience with banks led to the creation of Clear Factor - a decentralised global invoi...
View articleLooking at spending patterns of more than 1000 Spendesk users in 35 European countries, making 800,000 transactions totalling over €120million, the ‘S...
View article