Oku Financial

Asset-based lending across your balance sheet

Asset-based lending is a revolving facility secured against a combined pool of debtors, stock, plant and property, typically giving higher advance rates than single-asset facilities. This page explains the assets that may be included, how the facility works and the steps involved in arranging it.

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What asset-based lending is

Asset-based lending is a revolving facility secured against a combined pool of debtors, stock, plant and property. Oku Financial structures the facility to unlock balance sheet value before approaching a lender.

The combined pool is the defining feature of this product. It sits within Capital & Liquidity, alongside revolving credit facilities and business savings and deposits. We start with the business requirement and design the facility before taking the opportunity to market.

Who it suits

Scale and asset mix: asset-rich, mid-market businesses with a combination of debtors, stock, plant or property on the balance sheet.

Use case: a company that has outgrown standalone invoice discounting, or is planning growth, an acquisition or a management buyout and wants to discuss funding across several asset classes.

These are factors to discuss, not a guarantee of eligibility. All finance is subject to status and provider criteria.

What can be included

Debtors, stock, plant and property are the assets covered here. Asset-based lending uses a combined pool of these existing assets rather than financing the acquisition of a specific asset.

That distinguishes it from Asset Finance, which spreads the cost of acquiring vehicles, machinery or technology. We arrange both products independently and tell you which fits before approaching a lender. The requirement, rather than the product name, is the starting point for the structure.

ABL vs single-asset facilities

Asset-based lending typically offers higher advance rates than single-asset facilities.

Unlike single-asset facilities, ABL consolidates multiple asset classes into one structured facility, unlocking higher advance rates and greater overall availability.

Why an independent broker, not your bank

Independent

We have no balance sheet to protect and no product to push. We work independently, matching the requirement to the right lender rather than starting with a product to sell. The conversation starts with what your business needs, not with an existing lending product.

An independent approach means the finance requirement comes first. Trade finance, business lending and capital & liquidity are different funding disciplines, and we tell you which fits before approaching a lender. We present the options clearly and without bias, so the choice remains with your business.

Fast

We take your opportunity to the right lenders simultaneously, creating genuine competition and compressing timelines. This describes how we approach the market, not a promise about an approval or drawdown date. The facility is structured before the opportunity is put to the right lenders.

The purpose of approaching lenders simultaneously is to bring back options that can be reviewed together. We negotiate on your behalf and present those options clearly. Rather than negotiating blind, you can review the offers in the context of the requirement we have already discussed and structured.

Precise

We design the deal before we approach a lender: size, tenor, security and covenants. The structure comes first, so the opportunity we take to market reflects what your business needs. We then match the requirement to the right lender without unnecessary structure or cost.

The starting point is a conversation about your business and what you want to achieve. The product name is only part of that conversation. We identify the right structure and prepare the opportunity properly before going to market, then explain the options clearly before you choose.

How it works

  1. Tell us what you need

    Tell us about your business and what you are looking to achieve. The starting point is the requirement rather than a finance product. We take the time to understand your business properly and tell you which funding discipline fits before approaching a lender.

    This conversation gives us the context for structuring the facility. We work across trade finance, business lending and capital & liquidity, so the discussion can start with the business need rather than assuming that a particular product is the answer.

  2. We structure your facility

    We identify the right structure and prepare your opportunity before approaching lenders. The deal is designed first: size, tenor, security and covenants. We match the requirement to the right lender without unnecessary structure or cost, keeping the business need at the centre of the process.

    Once the opportunity has been prepared, we approach the right lenders simultaneously. That creates genuine competition and compresses timelines. We negotiate on your behalf, with the structure of the facility established before the opportunity is taken to market.

  3. Review your offers

    We bring back competitive options from lenders, presented clearly and without bias. You choose. The offers are reviewed against the requirement and the structure of the facility, rather than treating every offer as the same product. We tell you which fits before approaching a lender.

    Our role is to present the options clearly so you do not negotiate blind. We are an independent broker, not a lender. The choice remains with your business, and the facility remains subject to status and the requirements of the finance provider.

  4. We close it

    We manage the process through to drawdown, coordinating lenders, lawyers and paperwork. This is the final step in the same process that began with understanding the business need. Our role continues through the placement of the facility, rather than ending when offers are presented.

    Tell us what you need, let us structure the facility, review the offers and choose the option that fits. We then manage the steps through to drawdown. All finance remains subject to status; guarantees and indemnities may be required.

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Frequently asked questions

What is asset-based lending?

A revolving facility secured against a combined pool of debtors, stock, plant and property.

Why choose ABL over a single-asset facility?

Asset-based lending typically offers higher advance rates than single-asset facilities.

Which assets can be included?

Debtors, stock, plant and property.

How is it different from asset finance?

Asset finance spreads the cost of acquiring a specific asset; ABL is a revolving facility secured on a pool of existing assets.

Is Oku Financial a lender?

No. Oku Financial is a commercial finance broker. We work with a panel of lenders to find funding for UK businesses.

What facility size and asset advances may be available?

Asset-based lending facilities are typically £2m+ — mid-market product. Indicative advances are 85–90% of eligible debtor book, 50–60% of eligible stock and up to 70% LTV for property. All figures are indicative and subject to status.

What interest rate may apply to asset-based lending?

The interest rate is 2–4% over base rate on drawn amounts. All figures are indicative and subject to status.

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