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• 01 Apr

  Flexible Structured Finance Solutions For UK SMEs

  Structured finance means different things depending on the context. For banks and large institutions, it refers to complex capital market instruments like securitisation. For UK SMEs, however, it’s a hands-on funding solution that uses a mix of business assets, such as invoices, stock, or property, to unlock extra capital and support growth.

  Main Benefits Of Structured Finance

  Its main benefits are:

  • Flexible, tailored funding solution
  • Combines multiple business assets
  • Helps unlock more capital than single-asset finance
  • Supports growth, buyouts, acquisitions, or cash flow needs

  REQUEST A QUOTE NOW

  This article focuses on the SME financing option that uses structuring to leverage various assets to release more cash than by using a single asset class.

  Structured Finance Solutions for UK SMEs: Unlocking Growth Through Asset-Based Lending

  

  You can use this type of financial structuring to unlock the value held in your business assets. This can fund growth and acquisitions or meet cash flow needs.

  Funding That Grows with You

  Structured finance for SMEs isn't the complex world of securitisation and derivatives that banks use; it’s far more practical. It lets UK businesses like yours access tailored funding by leveraging the range of assets you may already have, including unpaid invoices, machinery & equipment, stock, vehicles, or property.

  Rather than squeezing into the rigid requirements of traditional loans, structured finance is designed around your business and needs.

  What Is Structured Finance for SMEs?

  At its heart, SME structured finance is a bespoke, asset-based lending solution. It combines the value of multiple assets, your sales ledger, equipment, property, and more, to create a flexible funding facility.

  This approach is ideal for businesses that may not meet typical bank criteria or need to raise amounts of funding that exceed conventional funding formulae. It can help you to raise more significant amounts of money that could be used for one-off purchases, such as buying a business or investing in new infrastructure.

  It’s not just a loan. It’s funding that works in sync with your operation.

  What Can It Help You Do?

  Structured finance for SMEs can:

  • Improve cash flow and smooth out seasonal gaps
  • Fund a management buyout or shareholder exit
  • Support restructuring or business turnaround
  • Unlock capital to invest in expansion or new opportunities

  Whether you need to stabilise cash flow, scale up, or buy out a partner, structured finance helps you move forward with the benefit of increased funding levels.

  How Structured Finance Works

  We start by listening. Then, we shape a facility around the assets and ambitions of your business:

  1. Initial Review – We discuss your plans and funding goals
  2. Asset Assessment – We review invoices, stock, property, equipment, and more
  3. Facility Design – A bespoke structure using any or all of the following:
     
     
     1. Invoice Finance (factoring or invoice discounting)
     2. Asset-Based Lending (ABL)
     3. Property Finance (bridging or commercial)
     4. Business Loans
     5. Stock Finance
     6. Equipment Financing (can include plant & machinery funding)

  See our related content about Asset Finance & Commercial Mortgages.

  Why Choose Structured Finance?

  The key reasons for choosing this type of structuring are:

  • Tailored Facility – Every facility is built around your business, not an off-the-shelf product
  • Flexibility - Raise extra capital by leveraging multiple asset classes under one facility
  • Speed – Get access to funds quickly when you need them most
  • Scalable – As your assets grow, so can your funding
  • Accessibility – Especially useful if your business doesn’t tick the usual banking boxes
  • No Equity Required – Keep full ownership and control

  Common Scenarios Where Structured Financing Works

  These are some of the typical scenarios where structured financing can be helpful:

  1) Working Capital Boost

  Smooth out seasonal cash flow or bridge long payment terms without expensive short-term borrowing.

  2) Management Buyouts (MBOs) & Shareholder Exits

  Raise extra funds internally by leveraging business assets without involving the need for external investors.

  3) Business Restructuring & Rescue

  When things change, structured finance can provide stability and liquidity to support your next move or even rescue your business.

  4) Growth & Expansion

  Fund new contracts, increase capacity, or hire confidently, knowing significant funding is in place and can grow as you do.

  Who It's For

  Structured finance is ideal for established SMEs in the UK that:

  • Trade B2B with other businesses on credit terms which give rise to invoices or applications for payment
  • Own assets such as receivables, machinery, equipment, stock or property
  • Need funding for growth, restructuring, or strategic changes

  If that sounds like your business, we’re ready to help you access financing tailored to your business. Just call us on 03330 113622 to access your options.

  Real Results For UK Businesses

  UK businesses across industries are already using structured finance to:

  • Unlock substantial extra capital for MBOs or business purchases
  • Increase liquidity and boost cash flow
  • Invest in infrastructure to support expansion

  You don’t need to be a big company to access structured funding. You will need the right partner to connect you with providers that support UK SMEs.

  Structured Finance Case Studies

  These are case studies where facilities have been structured outside of the normal parameters to achieve higher levels of funding:

  Case Study 1 - Structuring Finance To Take Over A Business.

  Case Study 2 - Leveraging A Target Company's Own Assets To Acquire It.

  Please read our article about using the GGS To Top Up receivables-based finance.

  Take the First Step

  There’s no cost to explore your structured finance options. Our team will take time to understand your goals and find solutions for your business. Call us on 03330 113622 to see your options with no obligation to proceed.

  By Glenn Blackman