What Is Asset-Based Lending and How Does It Work in the UK?

GOGOPROP
Property Guides
April 3, 2025
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For investors and buyers from Southeast Asia and the UAE, asset-backed lending offers an accessible and flexible alternative to traditional loans, particularly when purchasing UK property.

What Is Asset-Based Lending?

Asset-based lending is a type of financing where loans are secured against the value of tangible assets rather than the borrower’s credit history or income. This lending method allows borrowers to leverage the value of their assets, such as property, to secure funding quickly and efficiently.

How Does Asset-Based Lending Work?

The asset-based lending process is straightforward and revolves around the value of the secured asset. This process allows borrowers to access funding without being bogged down by lengthy credit checks or income verifications. 

Here is a step-by-step breakdown:

  1. Assessment of the Asset: The lender evaluates the market value of the asset, such as real estate, to determine the loan amount.
  2. Loan-to-Value Ratio (LTV): Lenders typically offer a percentage of the asset’s value as a loan. For example, GOGOPROP provides loans with an LTV of up to 60%.
  3. Approval Process: Unlike traditional lending, asset-backed lending focuses less on credit history and more on the asset’s viability, making approvals faster.
  4. Disbursement of Funds: Once the loan is approved, the funds are released to the borrower, often within days.

Which Assets Are Considered for Asset-Based Lending?

Asset-based loans can be secured against a range of valuable assets. When it comes to UK financing, real estate is commonly accepted. Residential or commercial properties can typically serve as the primary collateral. Existing property owners can also leverage the equity in their assets or property to secure additional financing.

GOGOPROP focuses on leveraging real estate assets in the UK to offer tailored, fast, and flexible loans for international buyers.

Comparing Traditional and Asset-Based Financing

Traditional or cashflow financing is the most common type of lending provided by banks and major financial institutions. It relies heavily on the borrower’s credit history, income, and overall financial health to determine loan eligibility. Unlike asset-based lending, this model focuses on the borrower’s projected ability to generate sufficient cash flow to meet repayment obligations. 

The key difference between traditional and asset-based financing is that it relies on the borrower’s financial track record, which can be a barrier for international clients unfamiliar with UK banking systems. Meanwhile, asset-based loans focus on tangible collateral like property value, making them accessible for overseas buyers without a UK credit history.

How Do Overseas Buyers Benefit From Asset-Based Lending?

For international investors such as those from Southeast Asia or the UAE, the reliance on credit history and income documentation can make traditional financing in the UK inaccessible. High denial rates coupled with long approval timelines may mean that many overseas buyers miss out on valuable property opportunities.

For overseas buyers, asset-based lending is an alternative to traditional financing that addresses the unique challenges of purchasing UK property: 

Loans Without a UK Credit History

A real estate agent welcoming a couple into their rental home

Traditional lenders often require a strong UK credit history and detailed financial documentation. Asset-based lending focuses on the value of the property or asset being financed, rather than the borrower’s credit history or income. This makes it an ideal option for non-residents who might otherwise struggle to secure funding due to a lack of UK financial records.

Quick & Secure Access to Funds

The UK property market moves quickly, especially in high-demand areas like London or Manchester. Overseas buyers risk losing out on valuable opportunities if financing delays occur. Asset-based lending offers fast approvals, with GOGOPROP providing loan decisions within 24 hours and funding in as little as 10 days. 

Ideal for Buy-to-Let Investments

By leveraging the property’s rental income potential, borrowers can secure financing without needing to meet the stringent income or credit requirements of traditional loans. This gives foreign buyers access to high-yield investment opportunities in the UK property market, enabling them to build or expand their portfolios.

Simplified Property Purchase

Navigating UK property laws, tax obligations, and regulatory requirements can be overwhelming for international buyers unfamiliar with the market. GOGOPROP’s asset-based loan model simplifies cross-border transactions through a digital-first approach. Our client-centred team provides personalised guidance to ensure buyers meet compliance requirements.

Overcome Currency Fluctuations

Currency exchange rates can fluctuate and be unpredictable, which can affect the cost of property investments and loan repayments for overseas buyers. GOGOPROP’s asset-backed lending simplifies financial planning by focusing on property value and providing real-time updates and clear, transparent terms and competitive rates.

Contact GOGOPROP today to learn how we can help you achieve your UK property investment goals.

GOGOPROP

When our family bought an electric cargo bike earlier this year, one of my biggest fears was that this lovely and expensive new machine was going to get stolen. So I got the best lock money could buy, and I started to investigate: did I need ebike insurance?

First, I called my homeowners insurance provider to see if they would cover the bike if it were stolen. To my surprise, because it’s an electric bike, not only did my policy not cover it, they wouldn’t even add it for an additional fee or sell me a separate policy for it, the way they did for our family car.

Instead they referred me to an insurance company that specializes in bikes and ebikes. I bought a policy from them and sleep a little better for it.

I’ve heard similar stories from other ebike owners. And I’ve heard worse.

What can happen without ebike insurance

The saddest stories are the ones where someone assumed their homeowners or renters or car insurance covered their ebike, and after it was stolen or seriously damaged, it turned out it wasn’t covered.

"And then there are the stories about people whose ebikes were covered by their homeowners policy, but their premium went way up when they made a claim for a stolen ebike."
<span class="blog-quote-name">-Kyle Miller, CEO Brass Hands</span>

Why it’s hard to insure an ebike

When it comes to insurance, ebikes land in a gray area outside standard homeowners insurance and auto insurance. Here’s why:

  • Ebikes are new in terms of the insurance industry. Most of the several million ebikes in the U.S. were purchased in the last two years. Insurers aren’t familiar with them, and insurers don’t like to be surprised by unfamiliar products.
  • Ebikes are more expensive than regular bikes. Policies that cover bikes, like most homeowners or renters policies, might have also covered ebikes until the insurer had to pay much larger claims than they expected to replace a damaged or stolen ebike. See above about insurers and surprise. So some policy terms got changed.
  • Finally, ebikes get stolen a lot, and not only from people’s homes. They are ridden and locked up outside all over the place, which makes them more vulnerable than other valuable household items.

Steps to take to properly insure your ebike

The odds that your ebike is covered by your existing insurance is lower than you may think. Here’s what to do to find out if you need ebike insurance:

  1. Call your insurance company and find out what they cover. Things to bring up: coverage of accidental damage, theft, and travel (like what would happen if you flew somewhere with your bike and the airline did a number on it). Does the insurance company consider your ebike a “luxury item”? If you’re happy with the coverage, great! You’re good to go.
  2. Consider bike-specific coverage. If you aren’t covered, or feel like the coverage you do have isn’t enough, here are some things to think about.

Bike insurance covers all kinds of bike specific things, not just theft. Think damage to the bike from a collision, medical payments if you are injured in a collision, insurance for the bike if you are traveling with it or racing it, or a bike rental while your bike is being repaired. Some policies even cover things like accessories (like bike lights and panniers) and riding clothes.

Bike claims won’t affect your other insurance premium. Should you need to make a claim on your ebike, your home insurance premium won’t change or get canceled.

We can help

Want to learn more about ebike insurance? Join Tempo and get easy access to insurance quotes, and other ways to protect your ebike right inside the app.

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