What is Asset-Based Lending?

Asset-based lending (ABL) is a form of business finance where a loan or credit facility is secured against existing business assets — including inventory, accounts receivable, equipment finance and commercial property. The borrowing facility reflects the value of those assets, giving businesses access to capital based on the strength of their balance sheet rather than cash flow alone. Seven Hills Capital Group works with specialist ABL lenders across all asset classes to match your balance sheet profile to the right facility.

The lender assesses the value of your business assets — receivables, inventory, equipment, property

A borrowing facility is established as a percentage of those asset values

You draw funds against the facility as needed

As assets are realised or replaced, the available facility adjusts accordingly

The facility is secured against the assets

Pros

• Unlocks capital locked in balance sheet assets that would otherwise be inaccessible
• Facility size grows with asset values — naturally supports business growth
• More flexible than traditional fixed-term business loans
• Available to businesses that may not qualify for unsecured SME lending

Things To Consider

• More complex to set up than simple business loans — more intensive due diligence required
• Business assets are at risk if the debt cannot be serviced
• Ongoing monitoring of asset values by the lender throughout the facility
• Not suitable for asset-light or service-based businesses with few tangible assets

How Seven Hills Capital Group Could Help Your Business

Every business situation is different. The illustrative examples on our case studies page are based on common scenarios we see from UK business owners and landlords - showing how the right finance product, found through a whole-of-market broker, can make a real difference.

What assets can be used in asset-based lending?

Accounts receivable, inventory, machinery and equipment, and commercial property are the most commonly used assets. Lenders typically advance 80–90% on receivables, 50–60% on inventory, and 70–80% on equipment. Seven Hills Capital Group will confirm what advance rates are available for your specific asset mix.

How is asset-based lending different from a standard business loan?

A standard SME business loan is assessed primarily on cash flow and trading history. Asset-based lending is assessed on the value of your business assets — making it accessible to businesses with strong balance sheets but variable or unpredictable cash flow.

How much can I borrow through asset-based lending?

This depends entirely on the value of your assets. ABL facilities typically range from £500,000 upward for established businesses. We will assess your asset base and identify the realistic facility size before approaching any lender.

Is asset-based lending the same as invoice finance?

Invoice finance is a subset of asset-based lending — specifically using accounts receivable as the asset. Full asset-based lending combines receivables with inventory, equipment and property into a single blended facility, typically accessing more capital than invoice finance alone.

How long does it take to set up an asset-based lending facility?

ABL facilities require more due diligence than simple loans — including independent asset valuation and audit — typically taking 4–8 weeks. Once in place, drawing against the facility is fast. Seven Hills Capital Group will manage the setup process throughout.