‘Re-finance’ enables you to raise money against your existing business assets
...We call this ‘sweating’ assets.
Invaluable as an alternative or additional fundraising tool to compliment core borrowing from your bank because funds can be provided against security in specific assets, thus protecting your credit headroom with your bank, or raising funds where your bank will not, or cannot, support.
Re-finance could equally apply to:
- The raising of finance to ‘settle off’ outstanding trade credit with your suppliers in order to protect your credit terms and limit…
- Conversion of daily and open-ended hire terms being offered by your suppliers or lenders on working assets, into ‘ownership’ facilities…
- Raising of funds for specific growth projects, acquisitions, and investments, or simply for working capital.
- While assets would ideally be unencumbered, re-structuring of existing debt against encumbered working assets can generate additional funds while often reducing monthly repayments.
Suitable assets will be tangible, medium to long useful working life, with viable residual values including commercial vehicles, plant, machinery and equipment.
Funding can be made available by selling the assets to the lender and buying or leasing them back via Hire Purchase, Finance Lease, or Loan & Chattel.
Funding periods will depend upon the age of the assets and their relative values, but up to 5 years is not uncommon.
Funding from around 75% to 100% of the lenders' valuations of the subject assets being offered as security can be raised. This may sometimes be subject to a professional third party valuation.
Industry sectors which operate suitable working assets include (but are not limited to) printing, engineering, transport, construction, manufacturing, and packaging, however if an asset has a suitable residual value it can be considered.
Call 01508 494 345 or email us
Our process includes:
- Reviewing the business rationale for the re-finance and obtaining a sound understanding of the business needs and objectives.
- Understanding the exact make, model, specification, perceived value, and life expectancy of the subject assets, before seeking a 'simple' or 'professional' valuation, as appropriate, through prospective lenders.
- Obtaining all the financial and other supporting information required by our lending partners.
- Working with lenders, identified to have initial appetite, to present a formal credit application and negotiate appropriate funding support for our clients.
- Preparing all the documentation and managing the processing of this and any 'pre-conditions' to ensure timely payment of funds into our client’s bank.