Best asset based lenders for UK businesses in 2026

The best asset based lenders for UK businesses in 2026 include HSBC UK, Lloyds Bank, NatWest, Shawbrook Bank, Close Brothers and Time Finance. Each offers funding against a combination of business assets, such as unpaid invoices, stock, property, plant and machinery. The main difference between providers is the size and type of facility they offer. Some focus on larger businesses with multi-million-pound funding requirements, while others work with smaller SMEs. Eligibility also varies depending on your turnover, trading history, asset base and funding requirements.

This guide compares six asset based lenders in the UK, including their typical facility sizes, eligibility criteria and the assets they lend against.

Compare the best asset based lenders at a glance

Facility sizes and eligibility criteria are subject to individual assessment and can change. A lender's stated maximum facility does not mean every business will qualify for that amount.

1. HSBC UK: best for large, international businesses

HSBC UK's asset based lending facility is aimed at larger businesses with significant funding requirements, particularly those with an international trading footprint. The facility combines funding against different types of assets rather than relying on a single source of security.

• HSBC targets businesses with turnover above £50 million and funding requirements of £15 million or more.

• Funding can be secured against receivables and inventory on a revolving basis, with property and plant and machinery available on a term basis.

• The facility is structured under a single agreement, with available funding linked to the value of the underlying assets.

• HSBC positions the facility for businesses selling on open account to other UK or international businesses.

• Its international network can also be relevant to businesses with operations or trading relationships across multiple countries.

This makes HSBC more suited to larger, asset-heavy businesses than smaller SMEs looking for a facility below £15 million.

2. Lloyds Bank: best for established B2B companies

Lloyds Bank offers asset based lending alongside its invoice finance facilities, allowing established businesses to raise working capital against several types of assets. Its facility is available to businesses with projected annual turnover of at least £10 million that sell business to business on credit terms.

• Funding can be secured against receivables, inventory, property, plant and machinery.

• Lloyds assesses the quantity, quality and type of assets available, as well as the accounting systems and reporting in place.

• The facility is bespoke, with pricing and structure determined based on the individual business and its assets.

• Asset based lending is available alongside a Lloyds Bank Invoice Discounting facility.

Lloyds could therefore suit an established B2B business that already has significant assets on its balance sheet and needs to increase working capital without relying solely on a conventional loan.

3. NatWest: best for transparent asset-based borrowing rates

NatWest publishes indicative lending percentages for each of the main asset classes it considers, making it easier to understand how different assets could contribute to an overall facility. Businesses need to be UK-based with turnover above £6.5 million. Current published lending levels include:

• Receivables: up to 95% of eligible invoices

• Inventory: up to 70% of cost price, or up to 95% of appraised Net Orderly Liquidation Value

• Plant and machinery: up to 85% of ex-situ market value

• Commercial property: up to 75% loan to value

NatWest says its ABL facilities can be used for working capital, acquisitions, refinancing, turnaround and restructuring. It can also arrange facilities on either a bilateral or syndicated basis. The amount a business can actually borrow will depend on the assets available, their valuation and the lender's assessment, rather than simply applying the published percentages to the entire balance sheet.

4. Shawbrook Bank: best for established mid market businesses

Shawbrook's asset based lending facilities are aimed at mid market UK businesses that have moved beyond their early trading years.

• Facilities run from £5 million to £50 million, secured against debtors, stock, plant and machinery and property, with an optional cash flow lending element available on top.

• Shawbrook looks for at least two years of active trading in the UK, a consistent trading performance and an experienced management team with strong governance.

• You don't draw the full facility upfront. Funding flexes up or down in line with your asset levels once each asset type has been assessed for quality, liquidity and valuation.

• Security is taken as a senior all asset debenture. Parental and cross guarantees may also be required, and property lending can run over terms of up to 30 years, with interest only periods available.

5. Close Brothers best for the widest funding range in one facility

Close Brothers publishes one of the widest funding ranges of any asset based lender on this list, spanning smaller mid market deals through to much larger facilities.

• Facilities run from £1 million to £65 million, funded against outstanding invoices plus property, stock, plant and machinery, with further plant and machinery funding available through Close Brothers' own asset finance division.

• You'll need a minimum annual turnover of £5 million or more, along with a track record of strong cash generation and positive cash forecasts.

• Close Brothers can prepay up to 90% of your eligible receivables upfront, with the rest of the facility structured around your specific assets and requirements.

6. Time Finance: best for smaller SME facilities

Time Finance's asset based lending facility is designed for smaller and medium sized businesses that need more funding than a single product can offer, without the multi-million-pound minimums the banks above require.

• Facilities run from £100,000 to £5 million, funded against invoices, stock, property, machinery and equipment, or your confirmed order book.

• It's aimed at smaller and medium sized businesses, with Time Finance naming manufacturers, wholesalers, distributors, engineering firms, haulage and transport operators, and printers among the sectors it typically funds.

• Because it blends more than one funding product into a single facility, Time Finance says businesses can access higher levels of funding than they could through any one product alone.

Which asset based lender is right for your business?

Choosing an asset based lender isn't just about finding the biggest facility. The right option will depend on the assets your business holds, the amount you need to borrow and the structure that works for you. When comparing providers, consider:

• Facility size: Compare the amount you need with the available facility, rather than focusing only on the headline maximum. Some lenders' facilities start where others end.

• Eligible assets: Check which asset classes each lender will fund. Not every provider lends against the same mix of receivables, inventory, property, plant and machinery, and your own asset base may only fit some of them.

• Pricing: Ask whether pricing is published or agreed deal by deal. Most of the lenders above price asset based lending individually based on your asset quality and credit rating, rather than quoting a fixed rate upfront.

• Facility structure: Find out whether funding is structured as fully revolving, a blend of revolving and term lending, or something else. This affects how quickly you can draw funds and how repayments fall due.

• Security: Check what security is required beyond the assets themselves, such as a debenture or personal or parental guarantees.

• Industry standards: Ask whether the lender is a member of UK Finance's Invoice Finance and Asset Based Lending Standards Framework, which sets out minimum standards members commit to in how they treat clients.

Compare asset based lending through Capitalise

If you're considering asset based lending, Capitalise can help you explore your funding options in one place. Complete one application and we'll match your business with suitable finance options from our panel of more than 130 UK lenders, based on your circumstances and requirements. You can compare the options available and decide which one works best for your business, with no obligation to proceed.