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Borrow against a wide range of assets
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CBILS Asset-based Lending
At Aurora Capital, our Asset Finance is now backed by the CBILS loan scheme, titled the Coronavirus Business Interruption Loan Scheme.
With this UK government initiative, we can help small businesses affected by coronavirus to access the finance they need to help them through this difficult time. Applying for CBILS-backed Asset Finance allows you space to breathe as you look after your business. There are no repayments for the first 12 months as the government pays the interest for that period as well as the upfront fee.
What is Asset Finance?
Asset finance, also known as Asset-based Lending (ABL) uses business assets as a way to secure finance to help established companies to fund big projects or cover a surge in growth. Asset-based lending relates to loans that are granted based on the value of the assets offered as security. This type of funding usually uses quickly-moving assets like outstanding invoices and inventory to secure the loan. However, assets can also include equipment, machinery and commercial property.
ABL finance provides funds quickly, making it ideal for times when your business needs an immediate or rapid cash boost. The amount of funds you can borrow is typically 75-85% of the value of assets you have pledged. However, this can differ depending on the lender.
In line with a range of other business loans, CBILS-backed Asset Finance is now available for those wanting to borrow £10k-£1m, over a term of 1 – 5 years.
Why choose Asset-based Lending?
Waiting for balances to clear can be time consuming and can leave your business short of vital cash. Using asset backed lending, you can release this cash to help the everyday running of the business or to help with a big project or expansion.
CBILS-backed Asset Finance allows you to release cash quickly, without the time usually needed for balances to clear. It is the perfect option for small business who need capital quickly to keep their business afloat during the challenging times of coronavirus; whether to keep the business ticking over, moving forward or to buy equipment to make their premises COVID-safe.
Risks associated with Asset-based Lending
As with all types of lending, there are some things to consider when deciding whether asset backed finance is right for you.
- A credit check is usually a mandatory part of the application process. This will show on your credit report and can affect your credit rating
- As with all lending options, defaulting on payments can result in excess charges
- As a last resort, asset-based lenders may seize the assets if payments are defaulted
When taking out CBILS-backed Asset Finance, be aware that the business is liable for the full amount of the loan. If you are unable to repay, the scheme provides a partial guarantee to the lender and not the business.
With CBILS-backed Asset Finance we can help your small business to receive the funds it needs to help see it through these challenging times. This type of funding eases the stress by proving capital based on your business balance sheet, including inventory, debtors and physical assets.
How to Apply
Fill in the above form or contact us
Tell us how much you’re looking for and you intentions with the funds. No bulky business plans or documents are required.
We find an offer
We search the market for the most competitive offers. A dedicated account manager will then provide support thoughout.
You’ll receive a personalised quote within just 24 hours. We currently have an 85% acceptance rate.
The money can be in your account within a matter of days.
Who Is Eligible For CBILS-Backed Asset Finance?
To be eligible for CBILS-Backed Asset Finance your business must meet the following criteria:
- Be UK-based
- Have an annual turnover below £45 million
- Experienced negative impact by the current pandemic
- Have a borrowing proposal that would be considered viable if coronavirus hadn’t affected the business
- Generate more than 50% of turnover from UK activity (trading or commercial activity)
- Demonstrate affordability
- Not have been classed as “in difficulty”
- Have no history of fraud
Providing you are a large business and have a well-kept record of payments and invoices, it should be quite simple for you to obtain an asset-based loan. This type of loan can be particularly useful for businesses that have extremely busy key seasons, including at Christmas. However, small businesses may struggle to find an asset-based lender who will provide funding. If you’re a smaller business looking to secure funding against assets, consider a secured business loan or invoice financing instead.
As most lenders in this field will generally only consider very large loan amounts, there tend to be fewer asset-based lenders on the market. Therefore, they tend to take a more personalised approach to the lending process. This means you can find a lending option that is ideal for you and your business, ensuring you gain the funds you need to enhance your business and complete your desired developments.
Finding an Asset backed funding solution with Aurora Capital
We’ve spent years building up solid relationships with trusted lenders, putting you in a comfortable position when it comes to applying for asset finance. By using our service you can be assured that you’ll receive a genuine offer with no catch no fuss and plenty of benefits. As we’ve spent time getting to know our lenders, we’ll also be able to help you get competitive rates.
Choosing the right finance solution for your business can be difficult, so speaking to us can help simplify the process. This means you can spend your time running your business rather than researching and applying for funding.