White Oak UK was recently featured on SFNET Presents: In the Know, with Jeremy Harrison, Managing Director and Head of UK Asset-Based Lending, as the guest speaker. The episode explored trends in asset-based lending (ABL), and funding options for Corporates and SMEs across the United Kingdom and Europe.
Understanding Business Loans and Asset-Based Lending in the UK
In the podcast, Jeremy Harrison provided insights on asset-based lending as a financing option for SMEs and Corporates. Unlike traditional bank loans, ABL allows businesses to borrow against certain assets, including receivables, inventory, or equipment, subject to the lender’s assessment and eligibility criteria.
White Oak UK provides asset-based lending, term loans, and short-term financing facilities to SMEs, typically with revenues between £2 million and £50 million. These solutions are structured according to the company’s assets, financial position, and compliance with relevant UK regulations.
Key Considerations for Corporates and SMEs
Asset-based lending can support businesses in managing cash flow or financing growth. Key points to note include:
- Funding depends on assets and credit assessment: Eligibility is subject to White Oak UK’s lending criteria.
- Facilities vary by size and purpose: Loans typically range from £2 million to £50 million.
- Cross-border considerations: Loans for UK businesses expanding internationally are subject to local laws and regulatory approval.
How Companies Can Use ABL
Companies and advisers can consider non-bank asset-based lending to provide alternative funding options for their clients, with attention to:
- Compliance with UK laws and regulatory requirements.
- Understanding that terms, rates, and facilities are assessed on a case-by-case basis.
- Awareness that lending eligibility and limits depend on the borrower’s financial profile and asset base.
FAQs About UK Small Business Loans and Asset-Based Lending
What types of small business loans are available in the UK?
SMEs and Corporates may have access to asset-based lending, term loans, invoice finance, and short-term facilities, depending on the lender’s criteria.
How does asset-based lending work?
ABL allows businesses to borrow against eligible assets such as receivables or inventory. Approval depends on the lender’s assessment, and borrowing limits are determined on a case-by-case.
Are non-bank lenders like White Oak UK regulated?
White Oak UK operates in compliance with UK regulations and conducts assessments in line with industry standards.
Can Corporates and SMEs use loans for international expansion?
Some facilities may support cross-border operations, subject to regulatory requirements in each jurisdiction. Perhaps add UKEF?
What is the typical loan size for UK Corporates and SMEs?
Loan sizes vary depending on asset value, company revenue, and credit assessment. Facilities generally range from £2 million to £50 million.
Conclusion
The SFNET podcast featuring Jeremy Harrison provided an overview of asset-based lending and business loans in the UK, highlighting options for SMEs and companies. All lending is subject to credit assessment and compliance with UK law.
For more information on asset-based lending and small business loans, visit White Oak UK
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