Asset funding is a quick, convenient and confidential means of raising capital in the UK. It’s readily available to individuals and small business owners – with or without a good financial track record.

Lamna specialises in short-term loans backed by a wide range of personal assets. We offer flexible terms and competitive interest rates, and there are no limitations on the use of funds.

Key areas covered in the article are:

• a definition of asset funding and how it works
• how banks are retreating from personal and small business loans
• the growth of the asset-based lending market worldwide
• advantages of asset funding
• where to get asset funding in the UK.

What is asset funding?

Asset funding is a popular financial tool that’s based on the secured lending model.

Fully paid-up movable items, such as gold and diamond jewellery, designer handbags, paintings, rare collectibles, luxury watches, boats, cars and commercial vehicles, are used as loan collateral.

The finance available is directly determined by the appraised market value of the asset or assets used to secure the loan.

Once an agreement has been reached and formalised in a written contract, the assets are temporarily handed over to the finance provider. They are insured and safely stored.

The borrowed funds are electronically transferred to the client’s account, and typically available on the same day. Assets are returned once the capital amount, plus interest, has been repaid in full within the agreed term.

Why asset funding is increasingly an alternative to traditional bank loans

In the UK and elsewhere in the world, banks are failing to adapt to next-generation financial needs.

Eligibility criteria for personal loans are strict and uncompromising, especially considering the trend towards less structured and more flexible work.

In order to raise finance through banks, individuals must be employed in full-time jobs, or have an independent source of income that demonstrates their ability to cover monthly loan repayments.

Even then, banks are retreating from the unsecured personal lending niche due to high risk.

Small businesses face similar hurdles when seeking short-term working capital. Loans are only available to established enterprises with strong balance sheets and credit scores.

Start-ups and young businesses have little chance of raising funds through traditional channels.

Asset funding is an agile finance option that enables individuals and businesses to unlock liquidity when required. Loan approvals are largely automatic as the level of risk is mitigated by the securing asset.

The rapid growth of the global asset funding market

Globally, the asset-based lending (ABL) market is experiencing sustained growth.

Market value is expected to rise from US$786 billion in 2024 to US$896 billion by the end of 2025. That’s a compound annual growth rate (CAGR) of more than 14%.

Long-term forecasts are bullish, with the sector predicted to reach US$1,433 billion by 2029.

Key factors driving growth include the increased demand for alternative, next-gen financing, with a focus on non-traditional types of collateral.

Asset funding for individuals

Asset funding is ideal for individuals requiring quick, discreet and uncomplicated access to cash.

It can be used to fund a personal project, invest in a lucrative opportunity, pay for unexpected expenses or consolidate debt.

The only consideration is the appraised market value of the asset. Neither the applicant’s job status nor perceived credit worthiness is considered.

Confidential information and sensitive documents, like payslips and bank statements, are not required, guaranteeing the applicant’s privacy.

With asset funding, anyone who owns a luxury item, and can prove ownership of that item, is eligible for same-day finance.

Asset funding for small businesses

One of the greatest risks to the success of a small business is poor cash flow. For many businesses in the UK, raising working capital in the past often meant:

• selling equity in the business to investors and losing total control
• applying for a business loan through a bank and being turned down due to limited financials or a poor credit score.

Now, with asset funding, business owners can leverage moveable items, like a company vehicle or delivery van, to sustain operations until cash flow improves.

Advantages of asset funding UK

Fast funding – loan applications are processed within 24 hours.

Easy approvals – funding is solely dependent on the appraised value of the asset.

Limited paperwork – no payslips, bank statements or business financials are required.

Low risk – only the securing asset can be seized and sold in the case of loan default.

Safe and secure – assets are insured and fully protected while in the care of the finance provider.

Where to get asset funding in the UK

Lamna is a leading provider of asset funding in the UK. We are registered with and authorised by the Financial Conduct Authority (FCA), and have processed loans ranging in value from a few thousand to half a million pounds plus.

We offer an optional asset collection service across Greater London, saving clients a trip to our offices, and fair and independent asset appraisals on which to base our loans.

Read our client testimonials and call us on 0330 341 1707 or send a WhatsApp to learn more about our secured lending process. Alternatively, you can apply for asset funding online.