Asset Finance
 

Sale and Leaseback

Sale and Leaseback, Sale and Hire Purchase Back or Chattel Mortgages

Businesses looking to raise cash generally fall into two categories:
they want to expand quicker than their existing sources of finance allow, or they are getting into difficulties and need to raise cash to re-structure the business.

Either way Nationwide Asset Finance Limited can help.

Types of Lending

Sale and Leaseback, Sale and Hire Purchase Back or Chattel Mortgage; it does not matter which label you use.

They are all ways of allowing a business to Re-Finance assets it already owns, including assets that are still on finance to release cash for further investment.

What Can it be Used for

Finance is usually required for:-

  • Business expansion
  • An injection of additional cash flow
  • The securing of a much larger order than normal
  • Move to new premises
  • Deposit on new machinery
  • Purchase of new machine tooling
  • Research and development costs
  • Buy out another shareholder

Alternatively finance can be used to cover:-

  • A bad debt
  • Clear arrears of Vat and Paye
  • Restructure existing borrowings
  • A Phoenix and re-start of a business
  • Re-finance businesses in either an IVA or CVA
  • Secondary financing of MBO/MBI

The list is endless.

Capital Raising for MBO/MBI

It is becoming increasingly more attractive to finance a management buy out or buy in using a businesses existing assets and in so doing avoid the venture capital route (or should that be "vulture" capitalist) This way the management gets to keep 100% of the business.

By coupling the re-finance of a company's assets with a factoring/invoice discounting facility and a commercial mortgage, we are often able to provide all the funding a buy out team needs.

Where a funding gap does remain, we can help further through our large network of business angels.

Types of Borrower

  • New Start-ups
  • Sole Traders and Small Businesses
  • Partnerships
  • Limited Companies
  • Publicly Listed Companies (PLC's)

Important Note

The fact that a business is making losses is no bar to raising finance. Businesses in a Phoenix or CVA will clearly not have a good set of accounts. The decision to lend is primarily based on the value of the equipment supported by directors guarantee's.

A Final Word

However difficult your circumstances may be do not despair. You will be surprised how often we have been able to help when others have failed.

How Much Can I Borrow

Amounts: - from £30,000 to £5m over periods of 1 - 7 years

Location: - anywhere in the UK including Northern Ireland

What can be Financed?

Most types of machinery or vehicle used in the following industries:-

  • Printing
  • Engineering
  • Paper & Packaging
  • Aerospace
  • Plastics
  • Bottling
  • Textile
  • Food
  • Telecomms
  • Transport
  • Agricultural
  • Medical & Dental
  • Catering
  • Waste
  • Construction
  • Quarrying
  • Mailing
  • Contractors Plant

Vehicles include: - Buses, Coaches, HGV's, Vans, Cars, Trailers, etc.

What do I do Next?

The first priority is to prepare a detailed list of the assets to be re-financed to enable the lender to obtain a desk-top valuation.

This will not cost you anything and it will give a very clear idea of how much can be raised against the assets - usually within just a few days.

The schedule should include:-

Make, model and serial number (registration number for vehicles), original cost, age of asset, when bought and whether new or used; usage (number of impressions, hours worked, mileage etc).

Additional Information Required

The lender will need to know at the outset the dates of birth and the full names (including christian) of all directors, their private addresses, the values of their properties, any outstanding mortgages and who with. Director's guarantees are usually required but these can often be limited to only 20/30% of the loan.

Armed with this and the valuation a decision in principle can be made very quickly at which stage the lender will produce an indicative offer of finance. Subject to this being acceptable a formal valuation of the assets is then undertaken and credit references taken up on the company and its directors. The lenders appreciate speed is usually of the essence and will respond accordingly.

Accounts are not always necessary but if they are available together with latest management figures, any forecasts, a business plan or turnround strategy then they will clearly help with the decision process. The more information you can provide at the outset the better.

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