ISCOVER
The new SME lender has launched a product that aims to help SME clients stay operational during financial stress without losing access to equipment.
Asset Based Lending (ABL), a new lender dedicated exclusively to asset-backed advances, has launched a new product aimed at providing businesses with urgent funding while allowing them to continue using their assets without the need for financial or personal guarantees.
The new Tracked Asset Advance has been designed for brokers to assist clients facing cash flow issues and financial stress.
The Tracker provides a loan secured by a physical asset, but unlike ABL’s original model, the borrower is not required to store the asset.
Instead, the product uses tracking technology and a charge over the company to provide security, allowing businesses to continue to use the asset during the loan term.
The product can be used to fund various business needs, including paying ATO arrears, managing payroll pressures, or funding essential repairs.
Key features include funding from $20,000 to $1 million, loan sizes up to 70 per cent of the forced sale value, and terms from one to six months.
According to CEO Steve Heavey, the new product has been launched in response to a surge in business insolvencies.
“Brokers told us they wanted a tool they could use to help clients stay operational during financial stress. That’s what makes The Tracker unique in the Australian market – because clients keep their assets while accessing funds,” Heavey said.
Heavey added that the product offers a solution for urgent business problems that may not be suitable for traditional lenders.
“The Tracker is a valuable option for brokers to have in their toolkit, because it solves urgent business problems that can’t wait for traditional approvals. ABL’s entire business is built on speed, flexibility and the ability to say yes when others won’t,” he said.
“Naturally, The Tracker’s added flexibility comes with additional legal structuring and risk management, but it delivers unparalleled support to businesses that can’t afford operational downtime.”
[Related: New asset-based lender launches for SMEs]
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