Comprehensive Asset-based Lending

Harness the power of your balance sheet to achieve your business goals

What is comprehensive asset-based financing?

Comprehensive asset-based financing is senior debt provided and secured against all the assets of a business in a single structured funding package. Assets can include land and buildings, plant and machinery, in addition to the traditional loan collateral of stock (inventory) and debtors (accounts receivable). In some cases, intangible assets such as brands or goodwill may also be taken into account. Comprehensive asset-based finance is therefore more akin to a multi-asset borrowing base facility and differs from single-asset finance such as invoice discounting, or stock finance.

This approach allows companies with a strong asset base to provide a greater level of security to the lender. As a result, financing can be raised in excess of that which would normally be advanced by conventional lenders, and at generally more attractive terms. In turn, as the comprehensive asset-based lender is usually secured across all aspects of the business, they will be interested in its success as a whole, rather than just concentrating on cash flow or ease of realisation of a specific asset.

Financing for businesses undergoing change

Comprehensive asset-based financing requires that the lender be familiar with all aspects of the borrower’s business. It is a particularly supportive and flexible form of financing for companies undergoing periods of change.

Such situations may include:

  • Acquisitions
  • Management buyouts (MBOs),management buy-ins (MBIs), or a combination of both
  • Refinancings
  • Turnarounds (early and mid-stage)
  • Restructurings

Comprehensive asset-based financing will also be of particular benefit to large corporates who are facing challenges in the following areas:

  • Cash flow
  • Working capital
  • Underperformance
  • Overleverage
  • Rapid growth

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Leadership

  • Kurt Marsden

    With over 20 years of experience, Kurt leads the Corporate Finance Group, which consists of Business Finance, Capital Finance UK, Junior Capital, Syndicated Finance, and Retail Finance.

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  • Steven Chait

    Based in London, Steven leads the EMEA region for Wells Fargo Capital Finance.

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  • Nigel Hogg

    Based in London, Nigel leads the credit department for Wells Fargo Capital Finance in the EMEA region.

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