• Background 5

Asset-based

All offerings introduced by Kiribilli Private are asset-backed loans that are secured by strong, tangible collateral. Unlike a traditional bank loan, which is approved based on a borrower’s credit score, balance sheet ratios and cash-flow statements, asset-based lending (ABL) is granted based on a thorough investigation into the tangible assets that a borrower can offer to secure the loan.

Borrowers can put up equipment, inventory, accounts receivable and other liquid assets such as real estate to secure the financing they need. In the unlikely instance that a borrower defaults, the originator, trustee or asset managers can seize the assets and sell them to pay off the investors in the loan.

The originators of our asset-based loans have deep expertise in asset valuation. In addition, Kiribilli Private only accepts investment opportunities with low loan-to-value (LTV) ratios. LTV ratio is a financial term that expresses the ratio of a loan to the value of an asset purchased. The lower the LTV, the less risky the loan is because it’s backed by a lot more collateral than the value of the loan.