Plant Hire Business - change of legal entity / negative equity in assets.

A well established small business that had recently changed from a Partnership into a Limited Company, looking for a new ‘yellow plant’ asset and wishing to part-exchange two smaller assets.

The problems faced by the business were their recent change in trading status, and the fact that the part-exchanges had finance settlement figures on them that were greater than the values placed on the assets themselves; negative equity that needed to be addressed for the new purchase to proceed. 

B2B Cashflow Solutions recommended taking an unencumbered existing ‘yellow plant’ asset, raising sufficient funding against it to clear the negative equity and thereby offering the client a way forward with their new purchase.

The facility was agreed in 24 hours and B2B Cashflow Solutions managed all the paperwork, dealing with the supplier of the new asset and making sure that the existing assets were settled-off with their finance companies.

This potentially difficult situation was easily overcome and was quick and easy to arrange, leaving the client to focus on maximising their revenues from the new asset.