Easing cashflow, supporting growth with ABL
Oliver Wilson, Head of Asset-Based Lending (ABL) at Shawbrook explains how his team look to support SME clients with their growth plans, drawing on the flexibility of the ABL facilities we provide.

Long associated with working capital, Shawbrook has evolved its ABL proposition significantly to provide not just cashflow headroom but also the firepower to fund strategic investments.
By looking at a company’s assets, whether stock, real estate, accounts receivables or more, our ABL team can offer a level of flexibility and certainty that clients can’t get with other types of debt structure. Furthermore, where profitability is growing, the team can assess both the assets and the cash flows to come up with a more flexible debt structure.
The client experience is also important when considering the right funder and the most flexible facility. Our dedicated ABL team focuses on markets we serve with absolute expertise. As the focus remains on more complex objectives, the team has reinforced it’s knowledge and experience to provide the best service and cater for broader regional requirements. This service includes a high ability to understand the different types of assets and their suitability for collateral, creating a facility that is flexible and beneficial to a client’s growth prospects.
For those still unsure about whether ABL is the right lending structure, the benefits are crystal clear. Firstly, as the facility is designed to revolve, there is often more flexibility on capital repayments, which can significantly reduce pressure on the borrower’s cash flow. ABL facilities can also grow in line with the customer’s business growth. Crucially, the quantum is based on both the wider asset pool of the business and its profitability. This holistic approach often allows businesses to access a larger amount of borrowing via ABL.
Funders with the expertise to provide both ABL and leveraged finance within the same structure for the same client are few and far between, particularly outside of the US. However, Shawbrook can provide both ABL and Corporate Leverage Finance to the same customer during the same transaction, offering the best of both worlds and a unique combination.
A recent example of this in action involved Goodfish Group, a leading provider of plastic injection moulding, assembly and extrusion manufacturing services. Goodfish approached Shawbrook, and our team was able to construct a flexible ABL facility to support its acquisition of Schneider Electric’s UK extrusion and assembly business in Flint, Wales, and to super-charge its working capital facilities for future growth. Not only did the multi-asset facility support the complex nature and timelines of the transaction, it also helped the firm expand its footprint and meet rising demand for its services in the building and construction sectors. In summary, borrowing more in the right structure can support growth and profitability rather than being a drain on it.
As specialist lenders focused on helping clients with their growth journey, regular contact and good communication is key to a successful relationship. Our managers run small portfolios of between twelve to fifteen clients only, so have stronger and more personal relationships with each management team, including regular ad-hoc communication and face-to-face meetings quarterly as a minimum.
Oliver Wilson added, "I've sat in front of hundreds of SMEs, and what’s important to them when choosing a debt provider is they want flexibility, a solid and reliable relationship and certainty of delivery.”
Naturally technical expertise and financial skills are pre-requisites when structuring optimal solutions to meet clients’ objectives. Equally crucial are the communication and soft skills that facilitate understanding the customer needs, risk management and the particular variables of the relevant sector. With this dedicated approach, the ABL team has expanded in the last quarter, including the recruitment of an experienced originator focused on supporting clients in the North and two skilled analysts to assist originators and clients.
Oliver Wilson summarises, “in a pretty active lending market, building rapport and long-term relationships built on trust, knowledge and open communication are distinctive features that make Shawbrook’s ABL team stand out from the crowd.”
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Oliver Wilson – Head of Asset Based Lending
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