Shawbrook enhances asset based lending facilities
Shawbrook has announced significant enhancements to its asset based lending (ABL) proposition to simplify and speed up the process of UK businesses unlocking the substantial value tied-up in both hard, and paper assets.
Shawbrook has streamlined ABL, encompassing multiple asset classes, to deliver clear solutions that offer certainty through a simpler mix of revolving and term debt options. This eliminates a significant layer of complexity in ABL transactions caused by disjointed facility documentation for each asset class, which has been a significant barrier to wider adoption since it came to market in the mid 1980’s.
To widen the scope of the ABL facility to support a broader range of asset-heavy businesses and funding needs, Shawbrook has also removed the cap on collateral mix for businesses. This provides a covenant-lite and flexible funding solution designed around the specific characteristics and needs of each client. It also brings ABL into the discussion as a potential funding option for a wider array of strategic initiatives, for instance to free-up capital tied up in business assets to invest in sustainability initiatives that support their long-term goals.
The changes come as Shawbrook seeks to support businesses looking to optimise their cashflow ahead of economic uncertainty, but also to increase the viability of ABL as an option for businesses wanting to achieve long-term strategic goals. The new product enhancements will make Shawbrook’s ABL product faster, simpler and more accessible for firms, and will be available immediately for businesses seeking quick access to funds.
Mark Parsons, head of asset based lending at Shawbrook, said “We are delighted to announce these new changes to our ABL product, which we hope provide a fresh approach catered to the needs of the modern funding landscape. For too long ABL has been viewed as a ‘last resort’ alternative to traditional cash flow options, despite offering enhanced flexibility, and certainty over those rigid funding solutions.
“We see ABL as being a viable solution in many situations to trade through periods of market stress, and our enhanced facility provides the ability to bolt-on other term lending solutions to solve a variety of strategic objectives. We believe that our improved offering, which is now faster, simpler and more accessible, will shine a spotlight on ABL, and it will evolve to provide another tool in the funding strategy.”
