Receivables finance and asset-based lending

This overview is a guide to the Banking & Finance content within the Receivables finance and asset-based lending subtopic, with links to the appropriate materials.

In the UK, a receivables facility is typically structured as a receivables purchase facility which can either take the form of an invoice discounting facility or a factoring facility. It is also possible to provide a loan secured against the value of receivables but this is much less common in the UK.

Asset-based lending involves the provision of a receivables financing as the core facility, together with one or more other facilities where the advance is calculated by reference to the value of each relevant asset class (eg inventory, plant and machinery and/or real estate). Asset-based lending can often be a hybrid structure of receivables purchase and secured lending facilities.

Invoice discounting and factoring

Invoice discounting and factoring are types of receivables purchase transactions whereby a supplier of goods and/or services (frequently referred to as the seller or the supplier) sells (typically by way of assignment) the receivables owing to it by the buyer of such goods and/or services (frequently

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