Asset-based lending
Borrowing base calculator
An asset-based lending facility isn't sized on one number. A lender builds a borrowing base by applying a discounted advance rate to each eligible asset class, debtors, stock, plant and machinery, and adds the results together. This tool estimates that total from your own figures using illustrative UK advance rates, so you can see roughly what an ABL facility might support before a lender's own valuation and audit.
How the total is built
Each asset class gets its own advance rate, then they add up
Debtors are typically advanced at up to around 85% of the eligible ledger, after deductions for old debt, customer concentration and disputed balances. Stock is advanced against its net orderly liquidation value, not book or retail value, typically up to around 50-60%. Plant and machinery is advanced against a forced-sale valuation, typically up to around 75%. These are generic industry-illustrative ranges, not a single lender's actual criteria, which will vary by sector, asset quality and lender appetite.
Worked example
£600,000 debtors, £200,000 stock, £150,000 plant, at illustrative rates
At 85% on eligible debtors, £600,000 supports £510,000. At 55% on stock, £200,000 supports £110,000. At 75% on plant and machinery, £150,000 supports £112,500. Total illustrative borrowing base: £732,500, before the lender's own valuation, audit and any reserves.
| Asset class | Eligible value | Illustrative rate | Contribution |
|---|---|---|---|
| Debtors | £600,000 | 85% | £510,000 |
| Stock | £200,000 | 55% | £110,000 |
| Plant & machinery | £150,000 | 75% | £112,500 |
| Total illustrative borrowing base | £732,500 | ||
Check your own figures
Estimate your borrowing base
Free to use, nothing is saved or sent anywhere. Runs entirely in your browser. Change the advance rates to model a more or less conservative lender.
Total illustrative borrowing base
£732,500.00
£510,000.00 from debtors, £110,000.00 from stock, £112,500.00 from plant & machinery.
Worked example: change the figures and rates to your own. Illustrative advance rates only, not a quote or an offer; a real lender applies its own valuation, eligibility criteria, concentration caps and reserves on top of this. Not financial advice.
What this doesn't capture
Real facilities are re-audited, not just added up once
A lender periodically re-values and re-audits each asset class rather than fixing the facility at the figure calculated on day one, and the facility moves up and down with the underlying assets. Adding a new asset class to an existing facility often triggers a full re-audit rather than a simple bolt-on, so the net uplift is usually smaller than the raw asset value alone would suggest. See how asset-based lending actually works for the full picture, including when a single-asset facility is the simpler answer instead.
Talk it through
Need another perspective?
You may already know which facility you think fits. The more valuable question is whether it's actually the right structure for what's happening in the business. We'll review the situation before suggesting possible routes. It costs nothing to have that conversation.
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A person reads every enquiry and we'll come back to you with what we think the right next step is. No obligation at any point.
What happens next
- A person on our team reads it. No need to know which facility you want first.
- If we can help, we may introduce you to a provider and tell you who they are.
- No charge and no obligation at any point. You decide whether to go further.
Adam Parker
Founder of Muswell Rose Consulting Ltd, which trades as Established Finance · former Managing Director of Penny, an invoice finance business, working in mortgages, commercial finance and fintech lending since 2010 (career history).
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Practical questions
Before you get in touch
How long does it take?
It varies by facility, so there isn't one number that fits every case. Some drawdowns against an existing facility complete within a day or two; arranging something new from scratch usually takes longer. We'll give you a realistic timeline once we understand your situation.
What information do I need?
To start, just a description of what’s actually happening in the business. If it progresses, the provider will ask for the usual things: recent accounts, a sense of turnover and trading history, and details of the specific need.