The core element of an Asset Based Lending facility.

Accounts Receivable (AR) are used for the Invoice Discounting element of the facility, with the advance rates typically amounting to up to 90%. We provide AR audits used in deciding the actual advance rate and other crucial facility parameters. 

We are normally engaged by either the lender or advisor to the business seeking an ABL facility. Our specialist team are experienced in dealing with all business types, from the straightforward supply-and-forget companies to those more contractual in nature. 

For more information on Accounts Receivable audits, please get in touch. 

Inventory or stock valuations can be complex. Let us help you navigate this process.

Ultimately, ABL lenders will lend against the Net Orderly Liquidation Value of the inventory. This value is arrived at after considering the typical sales value of the inventory on an orderly liquidation basis within a period of 90 days, after the costs incurred in selling that inventory. 

As an ABL will only have a floating charge over the inventory, the preferential rights of certain creditors must also be considered when arriving at the expected lending, or realisable value of the inventory. Whilst finished goods tend to make the best form of inventory for an ABL to lend against, it can also be possible to include raw materials and WIP, dependent on lender appetite. 

We have broad experience of valuing inventory of all types across multiple industries. If you would like a better understanding of how we value, and/or how a lender will consider a facility against inventory, please get in touch. 

A valuation of P&M for ABL lending purposes will typically look at the value of the P&M on an orderly liquidation basis, typically within a 120-day exit period.

The value will usually be considered on the basis of the assets being removed from the premises they are in, although sometimes an "in situ" value will be considered.

At LSH we have a very wide experience of valuing assets across multiple industries. We also have have vast experience of selling assets, whether through auction or private treaty sales, meaning we have up to date experience of real world values.

To find out what your assets are worth for lending purposes, please get in touch.  

We have a nationwide team of property valuers with extensive local market knowledge and sales experience.

Typically, Asset Based Lenders (ABL) look for a valuation to be undertaken based on a 180-day or 365-day marketing period.

Red Book Report

Our team provide Red Book Reports, conducted by an RICS Registered Valuer who will provide a Market Rent and Market Value of the property. They can also provide a value with “special assumptions”, this can include an assumption that a change of use or planning consent is granted or if there is a restricted marketing period. 

Property Options Report (POR) 

This is a strategic report providing an overview of the property position. It will provide a background to the property and also valuation but in addition has strategies available to the client and recommendations on which, in our opinion would provide the best outcome. 

Marketing Report 

If our clients are in a position to dispose of a property we can provide advice on the relevant route to market, the costs involved and how long we would expect before a sale is achieved. The surveyor will also provide the client with an insight into the relevant industry and illustrate where they believe interest from the property will derive from.  

By being part of a larger, Uk wide company we can ensure that all property needs are met by engaging with our colleagues to offer Planning, Management, Building Surveying and Development services on all Asset classes.

If you would like to understand what your property is worth for lending purposes, please get in touch.