Asset-Based Lending for Bespoke Business Finance

The private business finance market is maturing globally. As banks adjust to Basel 3.1 changes in the UK and US, many are exiting the asset-based finance market. This shift creates opportunities for lenders with flexible solutions and diverse products.

In a major development, White Oak Commercial Finance (WOCF) and White Oak Europe (WOE), affiliates of White Oak Global Advisors, secured a new $125 million multicurrency credit facility from Wells Fargo. This will enable White Oak Global Advisors LLC affiliates to lend to borrowers in the UK and Ireland

“Wells Fargo is pleased to provide this new facility to White Oak as they continue to execute their strategy of delivering tailored ABL solutions to borrowers scaling their businesses across multiple jurisdictions,” David Koshenina, head of lender finance for Wells Fargo Capital Finance, said.

The facility will support White Oak’s lending activities throughout the United States, Canada, the United Kingdom and Australia. Proceeds will fund WOCF’s increasing origination of Asset-Based Lending (ABL) and refinancing opportunities for borrowers across multiple jurisdictions. WOCF provides ABL and factoring solutions ranging from $5 million to over $200 million. Additionally, it has a leverage facility exceeding $1 billion through a Wells Fargo-led syndicate

White Oak to Expand its ABL Offering

WOE, based in Chester, UK, specialises in SME business finance, offering VAT loans, asset finance, and invoice finance with over £500 million in credit facilities. This new facility will enable White Oak to continue helping SMEs do better business.

“We are excited to expand our ability to provide creative financing solutions throughout the U.S., Canada, the U.K., and Australia,” Tom Otte, CEO of White Oak Commercial Finance, said. “We’re grateful for Wells Fargo’s continued support as we explore ABL on a global basis. The closing of this credit facility allows us to provide a one-stop global asset-based financing solution to new and existing borrowers while maximizing their borrowing capacity. This transaction highlights White Oak’s continued dedication to supporting middle-market companies with flexible capital.”

What Is Asset-Based Lending?

Asset-based lending (ABL) lets businesses use assets as collateral to secure funding. This flexible solution helps boost liquidity and manage cash flow. It provides financial support for growth, operations, or cash management.

ABL can unlock balance sheet value and improve liquidity. It also works alongside other funding options like mortgages and cash flow loans.

Assets able to be used as collateral include accounts receivable, inventory, equipment, vehicles and real estate. During the application process and negotiations, greater focus will be on the asset value and liquidity, alongside appropriate consideration of the creditworthiness of the business..

Why should businesses consider asset-based lending?

“For UK SMEs, access to finance drives growth. Traditional consumer loans provide cash but have rigid terms and depend on creditworthiness. ABL offers a flexible alternative, letting businesses use assets to secure funding.

Unlike consumer loans, which focus on credit scores, ABL is tied to asset value. This makes it ideal for SMEs needing working capital, expansion funds, or cash flow support. ABL provides liquidity without sacrificing equity or taking on unsuitable debt

Better business finance with White Oak UK

Asset-based lending can help improve cash flow management and provide growth opportunities & also be used for a variety of other purposes. We provide funding against receivables, property, plant and machinery and inventory. This means we can cover the entire balance sheet in terms of facilities that we can offer to our customers, allowing them to focus on what matters most. A