Issue link: https://viewer.e-digitaleditions.com/i/142338
financespecial of credit, backed by a company's accounts receivable or inventory balance. We also look at other forms of security, such as plant and equipment and property. Whereas banks typically will just look at the cash flows and revenue profile of a client to ensure that they can get their money repaid, we will look deeper into our clients and provide a flexible form of financing to support their growth. "[Asset based finance] is flexible. It will ebb and flow with the cycle that the company is going through." Q. What are some of its benefits? A. First and foremost, it's flexible. It will ebb and flow with the cycle that the company is going through. Secondly, we also try and free up directors' personal guarantees, which for many SME and mid-market clients is incredibly important. It's also incredibly important where companies are going through periods of extremely high growth, periods of distress or where their financial performance may be deteriorating, because it can unlock value from within balance sheet assets to support the business strategy. It's also a wonderful form of finance for companies in seasonal industries such as wine, labour hire or wholesale trade. Q. When is it not a good idea? A. I have not come across an example where it's not a good idea. I think one of the things that GE can do is really structure a financial solution to suit the client. Asset based lending both here and in the US has shown wonderful resilience through different financial circumstances. Paul's top tips for Growing businesses 1. Ensure you have a wonderful management team. 2. Have a financing structure in place that is suited to the cycle you're in. 3. Ensure you have a very clear strategy, and that it is well known throughout your organisation. 4. Have a good execution strategy. 5. Ensure your teams are capable of executing the strategy that you're positioning in your market. 49