Asset based lending: Providing a lifeline for SMEs

In an autumn that has so far thrown businesses a huge number of curveballs, a steady and stable road to recovery is what we all need. With a Government that has been in a constant state of transition, rising costs that continue to threaten profit margins and an economic recession on the near horizon, dreams of stability and growth ambitions feel, to many, out of reach. As always, alternative finance continues to be the constant presence supporting businesses through these challenges.

Financial intermediaries will know first-hand the hurdles involved when securing finance in the current economic climate, as some lenders are set to tighten their purse strings and appetite will become more and more restrictive. We understand that businesses need a funder that they can rely on and a solution that creates confidence. Solutions like asset based lending (ABL) can do just that.

Uncertainty for what lies ahead and what support measures may be available to help stimulate economic growth continues to ripple through the SME community. In a recent survey, Time Finance found that almost half of UK business owners feel uncertain about their future and 73% are calling for tailored financial support.

Finding security in assets

We know the challenges that businesses face and the opportunities that arise, (or are occasionally missed). We work hard to innovate our offering and respond to the ever-changing needs of UK SMEs – to ensure they have the right level of support for them and that missed opportunities are a thing of the past.

To meet the change in demand, Time Finance has just launched a new ABL offering, providing businesses with the common-sense approach to finance that they deserve. This new solution works alongside our invoice finance solution to unlock new potential, worth up to £2.5million in working capital, as well as the opportunity to lean on a reliable funder who will stand by their side.

ABL has the potential to equip businesses with a self-sufficient plan that really hands the reins back to them. By unlocking serious working capital from within the business, ABL can make investment plans a reality for your clients.

Empowering businesses with the financial freedom they need, ABL releases funds otherwise tied up in a number of business assets; from invoices, to commercial property, plant and machinery as well as stock. Providing a typically higher level of working capital, businesses are given the fuel needed to drive their plans forward.

The importance of relationships

Agility, flexibility and a holistic view to delivering funding solutions will be the key to unlocking business potential and driving business success into the new year. Current figures see inflation surpassing a 40-year high and rising costs continue to be the main worry keeping business owners awake at night. This only re-affirms the need for targeted financial support from their lenders and brokers in joint union.

Brokers and financial intermediaries will understand the real need for strong relationships in commercial financing, which is why this new offering is available through our intermediary networks. Working closely with trusted funding partners is absolutely vital to reaching the 10,000 SMEs we currently support in the UK. Not only do these connections enable us to spread our reach to even further businesses, but by nourishing such relationships we can respond to the market in this way.