Interpath’s Asset Based Lending team provide support to borrowers seeking to leverage balance sheet assets to generate funding that can be used to support day-to day working capital requirements as well for transactional purposes. We help our clients navigate complex decisions with pragmatic advice and we leverage our structuring expertise across a range of balance sheet assets to support borrowers achieve their financing objectives.
Our ABL team holds extensive experience working on various ABL transactions involving the assets listed below.
Receivables
Receivables funding (Invoice Finance) such as Factoring and Invoice Discounting provides a capital injection by making available funds against the debtors ledger. The facility is 'revolving' meaning that the facility is drawn and repaid in line with new invoices raised and ongoing cash requirements.
Inventory
Inventory finance generates capital by advancing funds against the value of owned inventory, also on a revolving basis. Similarly to receivables financing, available funding is also on a revolving basis with funding movement based on the changing value of inventory held.
Plant and Machinery
Plant and Machinery finance generates funds by extending a loan to the borrower based on an advance rate against an ex-situ market value of the P&M. Typically, the loan is amortised over an agreed period – up to five years is typical.
Property Lending
Property Lending generates funds against the vacant possession value of property. The vacant possession value is derived from an up-to-date property valuation. Loans are typically amortised over an agreed period (typically up to ten years) at a fixed monthly rate although interest only options can also be structured.
Cash Flow Loans
Over recent years lending structures beyond the balance sheet have gained further popularity as ABL lenders have sought to expand and extend their offering. Cash flow loans can be made available alongside traditional ABL structures for profitable, solvent borrowers – often such loans are made available to support an underlying transaction such as an MBO or ‘bolt-on’ acquisition.
