Asset-based lending (ABL) has come a long way from its “last resort” reputation. Today, it’s a flexible, scalable funding option used by over 35,000 UK businesses to unlock working capital and fuel their ambitions (UK Finance). In 2024 alone, ABL and Invoice Finance supported £313 billion in client sales: a sign of growing demand for funding that can flex around real business needs.
In this series, Anyone for T?, we explore three powerful ways ABL supports businesses through Turnaround, Transaction, and Trajectory. Each article looks at how tailored, asset-based funding helps businesses respond to challenges, seize opportunities, and scale with confidence.
How ABL supports Turnaround
Whether it’s losing a big customer, a sudden bad debt, or an unexpected staff departure, even the best-run businesses hit bumps in the road. Challenges are part of the journey, so the question isn’t whether it will happen. It’s how your business will respond when it does.
Why funding speed and flexibility make all the difference
In these pivotal moments, access to flexible finance can make the difference between survival and decline. But traditional lenders often can’t move fast enough: especially when a business no longer fits neatly into their credit criteria.
Businesses need a solution that can flex with them, not just provide funding when things are going well. And that’s where asset-based lending (ABL) comes in.
The Turnaround challenge: securing capital in uncertain times
More businesses are facing that need right now. With UK GDP growing by just 0.7% in the first quarter of 2025, and business uncertainty set to continue this year (UK Finance), the reality is that many companies are facing turbulence.
And, when the pressure’s on, cash buffers can quickly disappear. In Q1 2025, total SME deposits were almost 3% lower than the year before according to UK Finance. It’s a stark reminder of how fast working capital can erode.
Tipping points that trigger the need for turnaround
Turnaround funding isn’t just for businesses in crisis. Sometimes it’s about navigating a specific event that knocks confidence or interrupts cashflow. Getting the right support in place can help to steady the ship.
- We’re seeing those needs arise from a range of situations, including:
Losing a key customer: for many SMEs, a handful of clients represent a significant portion of revenue. When one walks away, the impact on working capital can be immediate. - Sudden shifts in market or regulation: whether it’s a change in compliance requirements,
new tariffs, or evolving consumer trends, businesses often need time and funding to adapt to
changes. - Key staff departures: a leadership gap can shake investor and customer confidence. It can also stall momentum at the exact time a business needs to stay agile.
- Ongoing underperformance: if performance dips, traditional lenders may become more cautious – even when the business has a clear plan to recover, leaving it potentially exposed
to unforeseen cashflow worries - Unexpected bad debts: when customers fail to pay, cashflow gaps open up fast.
- Existing lender’s change in risk profiles: Sometimes a business hasn’t changed, but its
lender’s criteria or appetite have which can lead to support stalling, and the business left
without the backing it needs.
Each of these scenarios is different, but they all share a common need for fast, flexible funding that can unlock breathing space and give the business time to regroup.
Why asset-based lending is built for bounceback
This is where asset-based lending comes into its own. These solutions use a business’ assets – like receivables, plant or machinery– and unlock liquidity. Because they are secured against existing assets, they can offer more funding potential than traditional loans. And, because facilities remain flexible, they can adapt as recovery unfolds (without constant renegotiation).
Real turnaround takes more than capital
It’s not just the funding structure that makes a difference, it’s the relationship behind it. In turnaround situations, businesses often need lenders who can move quickly, think creatively, and stay close to the journey. That’s why working with an independent asset-based lender like Ultimate Finance – one who takes the time to understand the full picture – can be a game-changer
Real-world recovery: working capital, fast
We’ve helped businesses come back stronger from situations like losing a major customer, pivoting to new markets, or resetting leadership teams, all with the right funding and partnership approach.
For example when a long-standing automotive supplier needed extra working capital to stay on track with existing contracts (and invest in machinery for new ones) timing was critical. They already had a flexible Invoice Finance facility in place with Ultimate Finance. So, when the pressure mounted, their Relationship Manager quickly pulled in our Asset Finance team.
Within two business days, we structured and approved a £108k refinance facility, settling existing agreements with another lender and unlocking cash tied up in 12 machines. This gave them breathing space to meet their commitments and the confidence to take on new work.
Next up: Transaction
Turnaround is just one reason businesses are rethinking how they fund their future. In the next blog of this series, we’ll explore Transaction: how asset-based lending powers confident acquisitions, carve outs, and buy-and-build strategies.
