ABL demand rises as SMEs shift toward structured, multi-product finance

Demand for asset-based lending (ABL) is rising as SMEs increasingly explore structured financing solutions to manage cashflow and support longer-term growth.

New data indicates a sharp increase in interest in ABL, reflecting a broader shift away from short-term borrowing toward multi-product funding structures combining facilities such as invoice finance and asset finance.

The trend comes as businesses continue to face delayed payments and tighter bank lending conditions, prompting a move toward more flexible and scalable funding models.

“Businesses are increasingly looking for funding solutions that can evolve alongside their operations,” said Ed Rimmer, CEO of Time Finance.

ABL allows companies to unlock capital tied up in receivables, inventory and equipment, making it particularly relevant in sectors experiencing ongoing liquidity pressure.

For the market, the development reinforces the growing role of structured working capital finance as SMEs adapt to a more challenging funding environment.