Asset finance can play an important part of the overall consideration in a management buyout. Although it is often the last piece of the jigsaw it can make the difference between making a deal happen and not making a deal happen. Furtherm0re it is imperative that you get a decent asset finance broker to coordinate the best possible deal.
Once upon a time it was very easy to obtain a cash flow loan from a high street bank against the overall facility. A cash flow loan is an amount a bank will advance based on the profitability of a business. Before the credit crunch and the recession these cash flow lends were relatively easy to obtain as the banks were awash with cash and fighting tooth and nail to do deals. How things have changed. An MBO is nowadays funded by the cash within the business ( if there is any), refinancing any property using the debtor book via factoring or invooice discounting and more often than not some deferred consideration.
In terms of the asset finance you will obtain funding from a specialist asst based lender. Refinancing of plant and machinery for such purposes is a very specialist market and it is mot usually provided by the high streets banks and finance companies as they do not have the same expertise. There are currently about half a dozen asset based lenders and they all do things sligtly differently. They all have a niche area and value different types of kit in different sectors slightly differently.
Tags: asset finance broker, refinance existing plant and machinery
