Sale and Leaseback, Sale and Hire Purchase Back or Equipment Re-finance
Businesses looking to raise cash generally fall into two categories: they either 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.
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.
You can borrow from £30,000 to £5m over periods of 1 - 7 years and we cover the whole of the UK including Northern Ireland.
Types of Lending
Sale and Leaseback, Sale and Hire Purchase Back or Equipment Re-finance; 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.
What can be Financed?
Most types of machinery or vehicle used in the following industries:-
- Paper & Packaging
- Medical & Dental
- Contractors Plant
Vehicles include: - Buses, Coaches, HGV's, Vans, Cars, Trailers, etc.