Asset-based lending
Produced in partnership with Alex Dunn of Norton Rose Fulbright and Helen Masri of Norton Rose Fulbright

The following Banking & Finance practice note produced in partnership with Alex Dunn of Norton Rose Fulbright and Helen Masri of Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • Asset-based lending
  • Key features of asset-based lending
  • Receivables financing
  • Inventory financing
  • Supplier ROT claims and landlord CRAR
  • Floating charges
  • Plant and machinery financing
  • Landlord CRAR and plant and machinery as a fixture
  • Ownership
  • Fixed charges and control
  • More...

Asset-based lending

COVID-19 (Coronavirus): Note that pursuant to the Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus) Regulations 2020, SI 2020/451, in force from 25 April 2020, restrictions have been imposed on a landlord's right to exercise Commercial Rent Arrears Recovery (CRAR) and to prevent enforcement agents taking control of goods. This is relevant to the information in this Practice Note about commercial rent arrears recovery. For further information, see Practice Note: Coronavirus (COVID-19)—implications for property—Restrictions on taking control of goods (including the exercise of CRAR) and Practice Note: Coronavirus (COVID-19)—implications for trade and commodity finance transactions.

This Practice Note gives a brief overview of the typical financing structures adopted by UK asset-based lenders and a summary of the key English law legal issues that arise when financing receivables (commonly known as book debts) specifically in the asset-based lending market together with one or more of the following:

  1. inventory (also referred to as stock)

  2. plant and machinery (also referred to as equipment)

  3. real estate, and/or

  4. cashflow loan

This Practice Note provides a brief overview of typical asset-based lending structures and key issues for consideration in relation to asset-based financing.

Key features of asset-based lending

Asset-based lending (ABL) is senior secured lending with the principal purpose of funding the working capital of a trading business. Funds are advanced by the lender based on the realisable value of

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