Will Europe Embrace Asset-Based Lending?


Asset-Based Lending - a Win-Win Proposition?

Graham Buck 24 February

Rather like root beer and pumpkin pie, asset-based lending (ABL) is well-established in North America but something that the rest of the world has yet to develop much of an appetite for. However, the ABL focus in this issue of the gtnews weekly bulletin suggests that its moment may have arrived. While several of the world's leading economies are starting to pick themselves off the floor, the strictures of Basel III are still making banks reluctant to lend. Necessity being the mother of invention, a host of alternative means of funding have been developed by companies. As contributor John Brehcist, a consultant to the International Factors Group (IFG) notes, factoring and invoice discounting were also US initiatives whose appeal then sprtead to Europe and ABL looks set to follow down the same path. Its ability to provide banks with a measure of reassurance while offering savvy users with competitively-priced funding could see more develop a taste for ABL.

Read the full letter...   

Expert Commentary

Latest ArticlesRSS Feed

Corporate Bonds: Developing the Secondary Market

Arin Ray, Celent | 26 February

Corporate bonds have become a popular investment vehicle in recent years, with sales of this form of capital raising registering high growth. In the developed world, a key driver behind the growth of corporate bonds has been the low interest rate regime persisting in many markets.

Europe: the Spectre of Stagflation

Heather McKenzie, gtnews Freelance Consultant | 25 February

With deflation increasingly likely and many of its key economies still struggling to achieve growth, the picture from the eurozone remains bleak. Speakers at the UK’s Institute of Economic Affairs’ (IEA) annual ‘State of the Economy’ conference in London considered the region’s prospects.


Blogs: What’s on your Mind?