FLEXIBLE FINANCE: Why Asset-Based Lending Is Your New Flexible Friend; from the Automotive and Defence Sectors to Greeting Cards and Inventory Management, Asset-Based Lending Is a Popular Form of @Exible Anance. Ian Bath, Regional Director of KBC Business Capital, oCers Some Examples
Byline: Ian Bath
ABL is increasingly used by a much broader range of companies - more than 55 per cent of ABFA member clients have sales revenues of pounds 10million or more.
The range of industries using ABL to nance growth is also widening, underlining ABL's appeal across the board. manufacturing and service industries account for over 60 per cent of business, distribution for nearly 20per cent and transport for seven per cent.
KBC Business Capital is at the forefront of the industries' growth. So far this year, we have closed more than pounds 140million of funding commitments in a variety of transactions.
One of the key reasons for our success is that we take time to understand our clients. It's not just about knowing the sector and a company's nancial background, but also how a business is positioned with its customers and suppliers.
One example of this in practice is the recently completed renancing of greetings cards publisherWatermark Publishing.
With an annual turnover approaching pounds 30million, Watermark Publishing is a leading supplier of greeting cards to the UK's specialist retailers.
The business generates in excess of 3,500 new designs each year and in 2007 produced more than 40million cards for sale on the UK High Street.
KBC Business Capital provided Watermark Publishing with a pounds 10million Yexible asset based lending package.
The asset-based lending facilities reYected the seasonal nature of the greeting card industry; where one third of all annual sales occur during Christmas sales period, with the spring season of Valentines Day, Mothers Day, Easter and Fathers Day following in quick succession. …