Asset Based & Cashflow Lending

Delivering certainty to transactions

Our unique ability to blend asset based and cashflow lending enables us to deliver certainty for growth, acquisitions, refinancing and wealth realisation. We’re also able to provide asset based lending (ABL) structures in isolation.

James Cullen explains Asset Based & Cashflow Lending and why it’s relevant to businesses right now.

Who it suits and why now

Businesses bouncing back from a period of turbulence

Businesses currently experiencing an inflexible debt structure

Asset-rich businesses with significant working capital or seasonal requirements

UK headquartered businesses with £2m+ EBITDA

Benefits

Flexibilty

Flexibilty

Asset based revolvers are the most effective aspect of ABL and allow businesses to maximise revolving funding availability for working capital, capex, acquisitions and debt service (interest and capital). This allows for absorption of operating cashflow blips and seasonality. Permanent leverage is often generated via these revolvers – no cleandown required.

One team

All under one roof

We deliver transactions as a single, empowered unit. Deal team members remain the same throughout our partnership with sponsors and management teams.

Higher relative quantum of debt

Higher relative quantum of debt

For relevant businesses when compared to either a pure senior, or asset based lending approach, on a standalone basis.

No significant bullet loan repayments

No significant bullet loan repayments

Avoid artificial timelines in which businesses must be sold or refinanced. Amortisation profile is shaped allowing for adequate revolver headroom (term lending is serviced via revolver availability).

Lower blended cost of debt

Lower blended cost of debt

Achieved via use of asset based revolvers (priced below typical senior cashflow debt), for a significant portion of the overall debt structure (usually 40%+).

Alan Henderson
Alan Henderson, CEO of Allied Glass

We deal with one team at Investec, for the deal and on an ongoing basis, which is a real differentiator for us.

Client case studies

2M

Allied Glass

Integrity Print

2M

2M Holdings was set up by Mottie Kessler and a business partner in 2003. It provides chemicals and application know-how to a number of industries across many sectors from cosmetics, personal care and pharmaceuticals to automotive, water treatment and emissions reduction. Other chemicals companies cover some areas – but there are few that have such a broad range as 2M. 

Allied Glass

Allied Glass is a combination of two Yorkshire high-end specialist spirits bottle makers with a proud history from the 1870s. It moved into the spirits sector in the 1970s, when it built a strong reputation as a manufacturer of difficult-to-do and complex bottles. Allied Glass’ biggest sector today is whisky, which by 2014 was about 60% of its product base. 

Integrity Print

Integrity Print was founded in 1917, and while the services it offers have changed hugely over time, it still places a premium on customer service and reliability. Based near Bath, its 380-plus employees run 35 continuous web presses, five label presses and ten high volume laser printers, plus print finishing and mailing equipment. 

Polyco Healthline

Downton

TechStream

Polyco Healthline

Our funding structure blends asset based and cashflow lending which supported the merger transaction and provides substantial headroom for ongoing working capital, seasonality and growth requirements. Investec has provided a £44.5m facility to support the merger of BM Polyco and HPC Group, blending receivables and inventory revolvers with cashflow term lending.

Downton

Downton is one of the UK’s leading privately owned logistics firms, with a strong reputation for quality and delivery – providing the flexibility of a local business but with national reach. The Downton family successfully built and developed the business from a single truck to now over 600 trucks and 1,000 trailers over the course of several decades. The majority of customers are blue-chip leading brands across a variety of sectors and include Dyson, Pets at Home, Fever-Tree and AB InBev UK.

TechStream

Our funding structure blends asset based and cashflow lending which supported the merger transaction and provides substantial headroom for ongoing working capital, seasonality and growth requirements. Investec has provided a £44.5m facility to support the merger of BM Polyco and HPC Group, blending receivables and inventory revolvers with cashflow term lending.

Everything starts with a conversation, so get in touch and see how our out of the ordinary thinking could help your business.

What we do

£5m* to c£100m on a bilateral basis

With underwrite/distribute capability for higher amounts.

Asset Based Revolvers

Against receivables and inventory (sometimes also fixed assets) are non-amortising and fund working capital seasonality, as well as core aquisition debt.

Term Loans

Structured against fixed assets and sustainable cashflows fund core debt requirement – undrawn acquisition/capex lines provided as required.

Scenarios

Working capital, refinancing/recapitalisation, growth/acquisition finance (MBO/MBI or combination), buy and build, cash out, shareholder change.

Quantum

Linked to debt serviceability.  We are not driven by arbitrary multiples or ratio splits between asset based revolvers and term loans.

Sectors

Chemicals

Food & Drink

Manufacturing & Engineering

Print & Packaging

Recruitment & B2B Services

Transport & Logistics

Wholesale distribution

*Sub £5m debt can be provided via our Capital Solutions team

 

 

Download our Asset Based & Cashflow Lending factsheet

Client wins

  • Food & Drink

    Enotria

     

     

    Hancocks

     

     

    Freshpak

     

     

    Allied

     

     

    Allied

     

     

    Halewood

     

     

    Flamingo

     

     

  • Recruitment & B2B Services

    TMP worldwide

     

     

     

    IESA

     

     

    Odgers

     

     

    TMP worldwide

     

     

    Matrix SCM

     

     

    Matrix SCM

     

     

  • Transport & Logistics

    Walkers

     

     

    EV Cargo

     

     

    Allport

     

     

    Downton delivers

     

     

    Downtown deliveries

     

     

    IESA

     

     

    IESA

     

     

  • Print & Packaging

    Allied

     

     

    Hanmere

     

     

    Allied

     

     

    Hanmere

     

     

    Coveris

     

     

     

    Britton

     

     

  • Manufacturing & Engineering

    Allied

     

     

     

    Halewood

     

     

    BM Polyco

     

     

    Polyco

     

     

    Crest Leather

     

     

    Carmel

     

     

    LPE

     

     

    Allied

     

     

    Coveris

     

     

    Hanmere

     

     

    Paragon

     

     

    Paragon

     

     

    Wirquin

     

     

  • Wholesale Distribution

    Polyco

     

     

    Durite

     

     

    2M holdings ltd

     

     

    BM Polyco

     

     

    Banner Chemicals

     

     

    BM polyco

     

     

  • Chemicals

    2M Holdings

     

     

    Banner Chemicals

     

     

  • Private Equity

    Techstream

     

     

    Banner Chemicals

     

     

    Aktrion

     

     

    Britton

     

     

    Brandon hire

     

     

    TMP worldwide

     

     

    Roadways

     

     

    freshpak

     

     

    Palletforce

     

     

    Allied

     

     

     

    Coveris

     

     

     

    Flamingo

     

     

     

    Maplin

     

     

     

    Southlakeland parks

     

     

     

    Park Resorts

     

     

     

    Paragon

     

     

     

    Hancock

     

     

     

    entoria

     

     

     

    Durite

     

     

     

    LPE

     

     

     

    Brandon Hire

     

     

     

    IESA

     

     

     

    Roadways

     

     

     

    Aktrion

     

     

     

    Britton Flexibles

     

     

     

    TMP worldwide

     

     

     

    Matrix SCM

     

     

     

     

     

    Eden Brown

     

     

     

  • Owner Managed

    MBO

     

     

    Polyco

     

     

    Investigo

     

     

    2M holdings ltd

     

     

     

     

    BM Polyco

     

     

    Banner Chemicals Group

     

     

    Crest Leather

     

     

    Carmel

     

     

    Odgers

     

     

    Dar

     

     

    Integrity

     

     

    Wirquin

     

     

About us

Asset Based & Cashflow Lending is part of the Growth & Leveraged Finance (G&LF) team. G&LF has been supporting the UK and Europe mid-market by lending to growth businesses for 15+ years. The 30+ strong team offers lending, private debt and capital markets capabilities to its private equity and corporate client base, spanning asset based and cashflow lending, senior secured debt (standalone, club/syndicate loans), RCFs, subordinated debt and minority equity. We originate, structure and provide debt solutions to growth orientated clients with EBITDA typically £2m-£75m EBITDA.

 

Meet the team

Meet the team

James Cullen

Growth & Leveraged Finance

Our people are our difference. Give me a call today to find out what we can do for you.

Paul Rablen

Growth & Leveraged Finance

Nicholas Buxton

Growth & Leveraged Finance