The PFG team has many years’ experience of arranging structured Asset Based Lending (ABL) solutions often in complex and on occasion pressured situations where strict deadlines may be involved. Our involvement typically encompasses the full end to end process. This extends from designing the proposed ABL structure that forms the basis of approaches to funders (supported by the detailed Lender Pack we produce on behalf of our client) to funder selection, working with a funder through the underwriting process, negotiation of terms and implementation support for agreed debt facilities.
When structuring the proposed ABL funding solution an important part of our role is to work with our client to identify key priorities. Different clients have differing objectives, for some it is about maximising quantum of funding, for others improving finance costs is pivotal.
Asset Based Lending is a combination of more than one debt product which secured on different company assets. These can include, plant and machinery, property, inventory, debtors work in progress and potentially other less tangible assets such as intellectual property.
For companies with a strong asset base, balance sheet and track record, Asset Based Lending to support working capital and growth can provide the rocket fuel that a business needs in realising its strategic vision. Companies in turnaround, but with fundable assets can also benefit from unlocking cash to finance their plans. There are funders in the market that target different lending scenarios. PFG brings this understanding to the process and we work to bring about a strong match which kicks off the client/funder relationship on the right footing. This can also change over time as a company in turnaround will normally find interest from a broader range of funders opening out as they build their recovery and a burgeoning track record. In such circumstances, a two-stage approach becomes possible with an original funder subsequently being refinanced by a new lender on a cheaper or more flexible basis further down the track.