Providing fractional ABL/ABF support and expertise for UK, European and Cross-Border SME & Mid-Market Growth.

Fractional ABL/ABF support gives you access to senior asset-based lending, asset-based and asset-backed financing expertise on a part-time, project or transaction basis. Rather than recruiting a permanent senior hire, clients engage Adam Johnson for a defined strategic project, transaction or growth initiative, drawing on more than 20 years of UK, European and Cross-Border experience.

ABL, ABF and Specialty Finance are often used interchangeably and frequently nuanced incorrectly. This is my take on distinguishing between the terminology.

Specialty Finance is an umbrella label for non-bank, collateral centric credit strategies that sit alongside (and often overlap with) asset-based lending, asset-based and asset-backed finance. Think of Specialty Finance as the vertical (who lends and to what niches), whilst ABL and ABF is the structural axis (how the lending or investment is funded and risk-allocated). In short, Specialty Finance is the “who/what” and ABL and ABF is the “how”.

Asset-Based Lending (ABL) is balance-sheet, borrowing-base lending to an operating company, where advance rates are set against specific working capital, equipment or other fixed assets and repayment ultimately depends on the borrower’s ongoing operations and ability to work the assets and turn the collateral. Invoice Discounting is a variant of working capital borrowing-base receivables financing and Factoring another working capital variant (commonly utilised in Europe) is a receivables/debt purchase structure. Commercial Finance is often the descriptive terminology for this form of financing.

Asset-“Based” Finance (ABF) is financing secured by a ring-fenced pool of cash generating assets (loans, leases, receivables, royalties, infrastructure contracts etc), where debt service comes primarily from the asset’s own cash flows and legal structure (often by way of an SPV), not the originator’s operating performance. By way of example, Platform Financing (lender finance) is frequently structured using Asset-Based Finance techniques.

Asset-“Backed” Finance (ABF) is often used to describe financing against fixed assets e.g. real assets (real estate, infrastructure etc). Asset-Based and Asset-Backed financing are structuring techniques that often coalesce with downside protection reliance placed on both the value of the fixed asset infrastructure and the cashflows generated from the same assets.

1. Middle Market ABL, Working Capital Financing (Commercial Finance)
2. Platform Financing (lender finance), including ABL’s, SME loans, leases, lower-mid market loans, consumer, transportation assets, trade finance, esoteric royalties, litigation financing and sports financing
3. Synthetic/Significant Risk Transfer (SRT)
4. Fund Finance
5. Real Assets (Real Estate/Infrastructure)

Structuring facilitates risk-adjusted return dispersion and distribution across a broad investor universe spanning investment grade (IG) through to sub investment grade investments

Asset managers, alternative credit providers, family offices, insurers and pension funds, as well as mid-market businesses, non-bank lenders and platforms, debt advisers and private equity firms.

Experience spans UK, European and Cross-Border lower mid-market ABL of £/€/$5–25m, and mid-market ABF and ABL of £/€/$25–150m+.

Yes. Support covers UK, European and cross-border situations, including multi-jurisdictional financing solutions.

No. Langfield Financial Solutions provides non-regulated strategic advisory, structuring and business development services only, and is not authorised or regulated by the Financial Conduct Authority. Its services do not constitute financial, investment, legal or tax advice.

Email adam@langfieldfs.com or use the contact form with a brief outline of your project, transaction or financing need.