Asset Based Financing Advice

At MCR, we offer expert asset based financing advice to businesses across the U.K. Our team can help and advise you on the best solution to your business finance needs.

What is Asset Based Financing?

Asset based financing refers to the provision of structured working capital and loans which are secured against assets such as land and buildings, plant and machinery, motor vehicles, stock and debtors.

An asset based financing provider may offer a structured funding package, which is secured against all of the assets in the business. This gives the lender a greater level of security and allows them to offer the greatest level of finance available.

Where is Asset Based Financing Used?

Asset based financing is available to all businesses in all market sectors. It is typically used by start-up and fast growing businesses and those looking to refinance existing loans. In addition, it is often popular with companies looking to fund mergers, acquisitions and management buy outs.

One of the most common examples of asset based financing is what is referred to as ‘invoice discounting.' This may be where companies have stretched their credit limits with suppliers and reached their lending capacity with banks. Businesses who find themselves in this position are often unable to operate at full capacity, meaning that they cannot fulfil orders or provide their services to customers.

The solution to this is that a lender will provide the company with the finance to continue trading. Once the company is in a position to do so, they will pay back the loan, plus any interest charged by the Asset finance company for the loan.

Asset based financing advice from MCR

In order to get the most from asset based financing advice, it is vital that you seek the advice of professionals who will be able to assess your situation in a considered and knowledgeable manner. From here, they will be able to advise you on the most appropriate course of action.