Asset-based lending for manufacturing companies

• Cash flow challenge: Manufacturers often have valuable assets on their balance sheets but limited access to fast, flexible funding when they need it most.

   

• Perfect for: Manufacturing businesses looking to release cash from machinery, inventory, or receivables to fund expansion, manage seasonal cash flow, or invest in new opportunities.

Novuna helps manufacturing firms unlock the value in their assets through tailored asset-based lending solutions, either through our award-winning in-house service or by providers to a great fit for your business.

Boost your cash flow Speak to an expert

What is asset-based lending (ABL)?

Asset-based lending allows your business to borrow money secured against the value of your existing assets such as machinery, stock, invoices, or property.

It’s a practical alternative to traditional loans, giving manufacturing firms the flexibility to access working capital that scales with their operations.

ABL funding can support new projects, acquisitions, and investment without diluting equity or relying solely on cash reserves.

How asset-based lending works for manufacturers

1. Identify eligible assets – including receivables, stock, and machinery.
   
   

2. Receive a facility based on a percentage of those asset values.
   
   

3. Access capital immediately to cover operational needs or invest in growth.
   
   

4. Repay over time as your cash flow and assets continue to perform.

This means your funding potential grows in line with your business where the more you produce, the more finance you can access.

Benefits of asset-based lending for manufacturing firms

• Unlocks working capital: Free up cash tied in machinery, stock, or invoices.
• Funds growth and expansion: Support production upgrades, new contracts, or acquisitions.
• Scales with your assets: Funding capacity increases as your business grows.
• Flexible and fast: Access funds within days, not weeks.
• No equity dilution: Maintain full ownership and control of your business.
• Improved liquidity: Stabilise cash flow during fluctuating demand cycles.

Asset-based lending vs traditional bank loans

What assets can manufacturers use as security?

Manufacturers can use a wide range of assets to access funding, including:

• Plant and machinery
• Inventory and raw materials
• Accounts receivable (invoices)
• Commercial property
• Vehicles and production equipment

This diversity makes ABL a highly flexible and reliable source of funding for manufacturers across the UK.

Boost your cash flow Speak to an expert

When asset-based lending works best for manufactures 

• Upgrade production equipment or expand facilities.
• Manage seasonal demand and cash flow fluctuations.
• Support mergers, acquisitions, or MBOs.
• Invest in automation or process improvements.
• Release cash to purchase materials or fund new contracts.

It’s a solution built around asset-rich, cash-intensive industries helping manufacturers remain agile and competitive.

Related finance solutions for manufacturers

Many manufacturing firms use asset-based lending alongside other flexible funding options from Novuna:

• Invoice finance – release up to 90% of cash tied up in unpaid client invoices.
• Working capital loans – keep projects and operations running smoothly.
• Asset finance – fund new machinery, vehicles, or technology without large upfront costs.
• Supply chain finance – strengthen supplier relationships and secure inventory.

Each product is designed to work together, giving manufacturers complete control over their cash flow.

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we can ease the challenges faced by manufacturing firms, from long production cycles to high capital requirements.

Speak to our experts today to help you get a great fit for your situation.