Shawbrook enhances asset based lending facilities

Shawbrook has announced a series of enhancements to its asset based lending (ABL) proposition to simplify and speed up the process.

Shawbrook says the changes will eliminate a "significant layer of complexity in ABL transactions" caused by disjointed facility documentation for each asset class.

To widen the scope of the ABL facility to support a broader range of asset-heavy businesses and funding needs, Shawbrook has 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 lender says its new product enhancements will make its 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.”