Taimour Zaman: The Silent Partner Powering the UK's Mid-Market Growth

If the UK economy has a sweet spot, it's the mid-market. These are the companies generating between £10 million and £200 million in turnover. Collectively, they serve as the nation's growth engine - responsible for a third of private sector turnover and employment.

Yet, despite their importance, these firms remain in a financial blind spot according to Taimour Zaman, founder of Altfunds Global. Too large for startup loans and too often overlooked by venture capital, they face a persistent funding gap that constrains ambition. Quietly, a new solution has been emerging from the balance sheet itself.

Asset-Based Lending (ABL) is increasingly shaping the future of growth finance in Europe.

The Anatomy of a Funding Gap

The limitations of traditional funding models for mid-market firms can be traced to three structural issues. Banks, still risk-averse in the wake of 2008, lean heavily on historical profitability and tangible security. That model leaves little room for businesses to reinvest profits into expansion. Venture capital, meanwhile, was designed to chase unicorns rather than steady-growth companies. Its demand for explosive returns and significant equity concessions runs counter to the priorities of founder-led mid-market firms.

Then comes the challenge of scaling from £10 million to £100 million. Growth on this level is not linear. It requires successive capital injections to meet inventory, equipment, and staff needs; traditional loans are rarely designed to support these needs.

The Silent Partner in Action

Asset-Based Lending functions as a revolving line of credit secured against existing assets such as receivables, inventory, machinery, and property. Unlike a static term loan, it flexes with a company's operations. The more a firm sells, the more liquidity it can unlock.

If a bank loan is the fuel tank for a rocket, ABL is the live pipeline feeding the engines. The faster the burn, the more it delivers.

Consider a UK engineering firm winning a £5 million, 24-month contract with a global energy client. To seize the opportunity, it needs £1 million upfront for materials and skilled labor. Payments, however, arrive quarterly, creating a cash flow cliff. A bank would likely decline, pointing out that past profits do not justify a £1 million unsecured loan. A venture capital firm might agree, but only in exchange for 30 percent equity and a board seat. An ABL provider, on the other hand, would advance 85 percent of the invoices as they are raised, providing capital immediately, with repayment tied to actual cash collection. In this scenario, the company can get the resources it needs without surrendering control. That is the essence of ABL: often described as a supportive partner that can enable growth with minimal interference.

A Strategic Tool, Not Just a Loan

The appeal of ABL is not only that it solves immediate liquidity challenges, but that it functions as a strategic instrument for executives who think ahead. It allows business leaders to fund acquisitions without diluting ownership, to manage seasonal spikes in retail inventory, and to act quickly on market opportunities before competitors can react. Research from Intermediate Capital Group underscores this point. The reason is simple. ABL aligns with long-term growth strategies rather than offering short-term fixes.

The Executive's Checklist

Timing can be crucial, with the smartest time to secure an ABL facility not during a cash crunch, but in advance, when growth is being planned. The most effective leaders begin with an asset audit, identifying where capital is tied up in receivables, contracts, or inventory. They tie funding directly to tangible goals, whether acquisitions, contract fulfillment, or seasonal expansion. Just as important, they engage providers early, entering negotiations from a position of strength rather than urgency.

Unlocking the Balance Sheet

The new era of business funding is not about pleading for capital. It is about unlocking the value already created. For the UK's ambitious mid-market companies, the most powerful financial partner may have been sitting quietly on the balance sheet all along.