Novuna Business Cash Flow launches £2m to £25m asset-based lending facilities

Novuna Business Cash Flow has launched asset-based lending facilities of between £2m and £25m, extending the UK financier beyond its traditional receivables-finance proposition into funding secured across multiple corporate asset classes.

The new facilities can combine receivables, inventory, plant and machinery and commercial property within a single funding structure. Every facility will include invoice finance, while additional collateral can be incorporated to increase the amount of liquidity available to larger and more complex borrowers.

Novuna said the proposition will operate under one overall facility limit, one lending rate and one monthly fee rather than requiring businesses to manage separate facilities against different types of assets.

The structure represents a meaningful expansion of the lender’s addressable market.

Invoice finance principally releases cash against unpaid customer receivables. Broader asset-based lending can increase borrowing capacity where a company also holds substantial eligible inventory, machinery or property, making the product particularly relevant to acquisition finance, restructuring and businesses whose growth creates funding requirements beyond their debtor book.

Novuna is positioning the £2m to £25m range towards mid-sized and larger UK companies seeking funding for investment, acquisitions, growth or periods of change.

The lender has also recruited Neil Sturgeon as corporate business development manager to support the expansion. Sturgeon has more than 40 years of experience across ABL, receivables finance and working capital and will work alongside Dan Lambourne, head of relationship management and corporate.

Lambourne said Novuna was seeing more companies whose requirements could no longer be met through receivables alone, particularly where significant value was tied up in stock, equipment, property and invoices.

For the UK receivables-finance market, the launch is notable because it represents an established invoice-finance provider deliberately broadening into multi-asset funding rather than adding a standalone lending product.

It also increases competition for larger corporate ABL transactions, where lenders seek to extract additional funding capacity from a borrower’s entire operating asset base rather than treating accounts receivable in isolation.

Pricing, advance rates, maturity parameters and individual eligibility criteria for the new facilities have not been publicly disclosed.