- Financial Institutions
- Asset Based Lending
Asset based lending
Asset Based Lending ("ABL") is becoming an increasingly popular alternative to traditional funding. ABL allows businesses to acquire funding against all asset classes including;
• Accounts Receivable
• Plant & Machinery
Here at Sanderson Weatherall, we provide specialist advice and support to Asset Based Lenders across the UK and Ireland; supporting both domestic UK and cross border European transactions. Our advice also extends further to Corporate Finance Advisors, Private Equity Investors and direct to businesses.
Collateral valuations and due diligence surveys are an important part of the secured asset based lenders considerations when considering new and reviewing existing portfolio - ABL transactions and are a major requirement of the credit process. These valuations and surveys support the lenders structured deal offering and are vital in the decision making process for secured lending on acquisitions, refinance and MBO/MBI deals.
We have a unique team with extensive UK, European and US experience in collateral valuation, due diligence, risk profiling, portfolio management and exit strategy.
We offer collateral valuation and due diligence primarily on the following asset classes:
• Accounts Receivable
• Commodity Inventory
• Commercial and Industrial Manufacturing Inventory
• Wholesale Inventory
• Plant and Machinery
With the knowledge and experience here at Sanderson Weatherall, given our national coverage, we have the range of skills to support the needs for collateral reviews, due diligence, valuation for all secured lending requirements; whether new business, managing existing lending portfolios or advising on risk and recovery profiles.
Case Study: Asset valuation services facilitates management buy-out of Siddall and Hilton ProductsSiddall and Hilton Products Ltd are a firm involved in the production and distribution of welded wire mesh, including fencing panels, which are sold to fencing systems suppliers and distributors throughout the UK, and overseas.
Siddall and Hilton Products Ltd are a firm involved in the production and distribution of welded wire mesh, including fencing panels, which are sold to fencing systems suppliers and distributors throughout the UK, and overseas.[fulltext] =>
The company has been family owned since it was founded in 1898 and the recent management buy-out facilitated an exit for the Siddall family and other shareholders. It also will allow those left within the Siddall and Hilton Group the opportunity to focus on its other business interests.
Our Asset based lending department provided the company with asset valuation services, offering advice for inventory and plant and machinery asset valuation. We were also able to provide Siddall and Hilton Products with accounts receivable collateral review advice on behalf of the management team, their advisors and the asset based lenders.
Our specialist asset based lending advisors were able to pull together all asset classes and form eligibility and value viability opinions for the benefit of the management buy-out team. This allowed the lenders the ability to set parameters of suitable lending levels for now and in the future.
Ian Thurley, Finance Director at Siddall & Hilton Products Ltd said:
"Sanderson Weatherall were engaged at very short notice and the highly confidential nature of the project required that work was completed with a great deal of circumspection. Christian conducted the exercise in a thoroughly professional manner and worked tirelessly to produce a quality report to extremely tight deadlines.
Sanderson Weatherall's asset based lending team quickly picked up the salient points of our stock valuation methodology, conducted a full review of our debtors ledger and undertook a review and valuation of our fixed assets. The final report was accepted by our funders without need for further recourse; a significant step towards facilitating the resulting deal.
I would not hesitate to use SW again and would recommend them to anyone seeking similar services."
Case Study: Bladnoch Distillery secure a £3million asset based lending dealOur asset based lending team has helped Bladnoch Distillery Limited secure a £3million asset based lending deal with The Royal Bank of Scotland that will free up cash flow and support re-establishment of the Bladnoch Distillery and brand as highly sought after Lowland Scotch whisky.
Our asset based lending team has helped Bladnoch Distillery Limited secure a £3million asset based lending deal with The Royal Bank of Scotland that will free up cash flow and support re-establishment of the Bladnoch Distillery and brand as highly sought after Lowland Scotch whisky.[fulltext] =>
Bladnoch Distillery Limited is a single malt distillery located on the banks of the River Bladnoch in South West Scotland. Bladnoch was established in 1817 and is one of the oldest Scotch whisky producers in the region.
The distillery ceased production in 2009 and was acquired in 2015 by Australian entrepreneur David Prior who plans to re-invigorate the brand in the UK as well as exporting its products to Australia and beyond.
Our asset based lending team provided The Royal Bank of Scotland and the company with an independent inventory valuation on their maturing whisky.
Funding is being provided by The Royal Bank of Scotland’s team who structured an innovative £3million facility that allows Bladnoch Distillery Limited to invest in their significant growth ambitions. The facility will also contribute to ongoing working capital to meet new production costs following the planned installation of a new distillery.
David Prior, owner of Bladnoch distillery, said:
“We see great opportunity in Scotch whisky and have big plans for the future. Initially we are concentrating on getting Bladnoch Distillery operational again and launching our Pure Scot and Bladnoch products.
“The valuation work that Sanderson Weatherall completed gave us the ability to free up the cash value within our company assets and we are now able to focus on our key company objectives. Without Sanderson Weatherall’s help we would not be in such a strong position to move forward.”
Market leading asset advisors launch integrated serviceProperty and asset consultancy firm Sanderson Weatherall have annouced the appointment of Chris Brooke, a debt and working capital management specialist, who has joined their market leading asset advisory team.
Property and asset consultancy firm Sanderson Weatherall have annouced the appointment of Chris Brooke, a debt and working capital management specialist, who has joined their market leading asset advisory team.[fulltext] =>
In a move to provide clients with a total asset solution, Chris' appointment enables the award winning firm to deliver accounts receivable collateral review and audit, debtor ledger collect out management and debt advisory consultancy services. This will be in addition to their existing services of inventory, property, plant and machinery valuation, and portfolio management review.
Chris joins asset based lending specialists Christian Humphreys, partner, and Lee Joyce, associate partner in delivering their service to financial lenders, insolvency practitioners, corporate recovery specialists and private equity houses operating within a range of industry sectors.
Christian said "Chris has more than 13 years' of experience in the sector and brings with him skills and knowledge than enable us to strengthen our client offering. With Chris on board, we can now deliver a complete asset advisory service, nationwide, which incorporates valuation, advice and management.
“The asset finance market continues to see a robust recovery following the economic downturn and demand for these types of services and products is growing. Companies looking to expand or refinance are increasingly looking at new ways to fund their plans and unlocking cash tied up in assets is one way to do this. Funds secured against assets offer greater flexibility and power to access cash quickly and easily without pressures in approving unsecured lending, making it an increasingly popular choice for businesses.”
Chris, who joins Sanderson Weatherall from BDO, and previously spent seven years at PricewaterhouseCoopers said: “Sanderson Weatherall is now able to provide accounts receivable collateral review and debtor ledger recovery enabling the firm to benefit from the buoyancy in the sector and offer clients a fully integrated suite of asset based lending services.
“The firm’s strong reputation and potential for even further growth within asset based lending advisory and valuation was a real draw for me to join Sanderson Weatherall and I am looking forward to sharing my experience with the team and clients."