Receivables
- Moves with
- Eligible invoices and collections
- Watch
- Ageing, disputes and concentration
ASSET-BASED LENDINGSeveral asset pools.
Several asset pools.
One funding decision.
Where receivables alone do not meet a substantial requirement, an asset-based structure may consider other eligible assets alongside the sales ledger.
Discuss a multi-asset requirement
SUBSTANTIAL FUNDING / ESTABLISHED COMPANIES
THE COMMERCIAL STARTING POINT
Asset-based lending can combine funding against receivables with eligible stock, machinery or other assets. It is different from financing a single asset purchase. A specialist route, security structure and realistic borrowing base must be established before treating it as available.
Invoice finance £500k+ · Asset finance £250k+ · Business loans £200k+. Focus amounts, not fixed eligibility thresholds.
01 / THE COMMERCIAL DETAIL
Start with the assets and the purpose
ABL may be relevant to an established manufacturer or distributor with material receivables and owned assets, where growth, a planned refinance or a business change creates a larger funding requirement. Book value is not the same as a lender’s recoverable value.
Present a schedule of assets, ownership and existing charges. Explain why a conventional invoice facility, a discrete asset refinance or a term loan would not meet the need. Combining assets adds complexity and should deliver a clear commercial benefit.
02 / THE COMMERCIAL DETAIL
Understand the different cash profiles
Stock
- Moves with
- Accepted stock and valuation rules
- Watch
- Ownership, age and obsolescence
Machinery
- Moves with
- Valuation and scheduled repayments
- Watch
- Useful life and settlement exposure
A receivables line typically fluctuates as eligible invoices are raised and paid. A machinery-backed advance may reduce through scheduled repayments. Stock availability can change with seasonality, obsolescence, ownership and valuation rules. A total headline package does not describe the cash available every day.
Test the borrowing base and repayment schedule together. An initial release of cash may be useful, yet scheduled asset repayments can create a later constraint unless trading cash generation supports them.
03 / THE COMMERCIAL DETAIL
Security coordination is part of the structure
| Asset / claim | Check first | Why it matters |
|---|---|---|
| Ownership | Title and retention-of-title rights | An asset may not be free to charge. |
| Existing security | Lender rights and priority | Avoid counting the same value twice. |
| Release | Settlements and consents | Gross value is not net cash. |
| Specialist route | Partner appetite and structure | Availability must be confirmed. |
Existing invoice, asset and bank facilities may already hold rights over the same assets. Establish settlements, retention-of-title claims, first-ranking requirements and whether priority or intercreditor arrangements are needed. Do not add together asset values already funding another facility.
NBS can scope the commercial question. Specialist partner capability, asset appetite and the proposed security arrangement must be checked before a case progresses. The discussion is not an offer of an ABL facility or a commitment to a particular transaction size.
HYPOTHETICAL EXAMPLE / NOT A CLIENT CASE
A borrowing-base illustration, not a valuation
Receivables£1.28m£1.6m × assumed 80%
+Stock£240k£600k × assumed 40%
+Machinery£200k£400k × assumed 50%
Net headroom£550k£1.72m gross less £1.17m settlements, reserves and drawings
Hypothetical illustration only. Not a client case, quote, lender policy or funding commitment.
Assume eligible receivables of £1.6m at 80% produce £1.28m; eligible stock value of £600k at an assumed 40% produces £240k; and machinery realisable value of £400k at an assumed 50% produces £200k. Gross funding is £1.72m. After £450k settlements, £120k reserves and £600k existing drawings, illustrative net headroom is £550k. These advance assumptions are invented solely for the arithmetic and are not typical lender terms.
Illustrative assumptions only. Not a quote, provider policy or funding commitment.COSTS, SECURITY & PRACTICAL CONSTRAINTSKnow the cash.
Know the cash.
Know the commitment.
Potential costs include valuation, due diligence, legal work, monitoring and commitment charges as well as interest and receivables service fees. Clarify which assets secure which obligations, amortisation, covenants, guarantees and the treatment of shortfalls in the borrowing base.
Understand facility fees and costs ↗For the next stage of assessment
- Receivables ageing and stock by category, age and location
- Asset register, ownership evidence and available valuations
- Existing facilities, security documents and settlements
- Integrated cash-flow forecast and repayment plan
The brief enquiry does not require these documents. Agree the purpose, permissions and appropriate sharing route first.
BEFORE YOU PROCEEDThe questions
The questions
worth settling.
Can every asset on the balance sheet be included?
No. Ownership, prior security, recoverability, location and provider appetite affect eligibility. Some assets may contribute no funding.
Is ABL the same as an equipment hire-purchase agreement?
No. Equipment finance funds specified assets under a particular agreement. ABL considers a wider borrowing base and coordinated security.
Does NBS have a confirmed ABL facility ready to offer?
No facility is being offered on this page. The availability of an appropriate specialist route must first be established for the requirement.
PRODUCT CONTEXT / FURTHER READINGHilton-Baird: asset-based lending ↗British Business Bank: invoice finance ↗
These external sources explain product features. They do not establish an NBS agreement, current lender appetite or terms available to your business. Content reviewed 24 October 2026.
A CLEAR BRIEF IS THE STARTA substantial requirement.
A substantial requirement.
A useful conversation.
Discuss a multi-asset requirement
Start with a brief enquiry.
No financial documents needed to begin.