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ALL Capital’s structuring
approach leverages our clients’ Asset Based Lending capacity, then adds cash flow term loans where the overall debt service capacity of the business allows.
This approach can improve cash flow significantly and reduce the debt service burden for ALL Capital's clients vs. leverage finance structures that are not ABL led.
A major proportion of the total facilities can be structured against working capital assets, with the following benefits:
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Facilities are revolving/self-liquidating so clients borrow only what they need.
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Supporting growth and peak trading periods.
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Facility liquidity is closely matched to fluctuations in working capital requirements.
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This is particularly beneficial to clients with the following characteristics:
A significant proportion of clients’ facilities can be structured against capital assets.
• This can provide liquidity towards investment in the client’s asset base to support growth.
• Facilities secured against capital assets often have extended amortisation periods, matched to the useful life of the assets.
The low debt service burden of the asset based portion of the facilities preserves cash flow, which allows the business to service the cash flow term loans and potentially support higher levels of leverage more comfortably than would be the case for alternative lending structures.
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