XL Business Finance Blog » Asset Finance

Asset Refinance available from Prime funder

admin — Fri, 06 Jan 2012 09:37:50 +0000

Until now stand alone asset refinance has only been available from specialist and traditional more expensive finance companies. However, a prime funder has now entered the market offering to refinance plant machinery and tangible assets providing it is for the right reason. Funds might be required for expansion, deposit on a new machine, an MBO or an MBI.

The balance sheet of the business must be reasonable and the business must have been trading for more than three years. Providing there is a strong rationale for the refinance and the equipment has good value we have a very good chance of obtaining some funding. Businesses which are struggling and need to refinance kit because they and are struggling to pay creditors may still be able to obtain funding but it will be via a very different type of lender.

Normally it is possible to provide an indication of what is available within 24 hours. All we need to get the ball rolling is a list of plant and machinery to include age make and model. We can then get a value of the kit for refinancing purposes which enables a quick assessment of the viability of the refinance. XL Business Finance is one of the Uks leading funders in asset finance and refinance and we have 15 years experience in doing such deals.

Organising retrospective asset finance

admin — Wed, 02 Nov 2011 09:32:33 +0000

Ever wished you had funded your cap expenditure requirements instead of paying cash. Did you know it is possible to organise retrospective hire purchase and finance lease deals within 3 months of purchase?

So many businesses come to us asking for additional working capital following cash purchases of plant and machinery. In today’s economic climate trading conditions can rapidly change and it makes prudent business sense to fund as much as possible. Cash is King as they say. Funding is available at decent rates, subject to credit of course and providing you meet the funders lending criteria. If the purchase is more than 3 months ago don’t worry, finance may still be available but it is a different type of funding. Asset refinance is provided by a number of specialist asset based lenders and it is an area that XL Business Finance has many years experience.

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admin — Sun, 30 Oct 2011 21:20:59 +0000

Only 22,000 miles

Why use an asset finance broker?

admin — Thu, 20 Oct 2011 07:50:55 +0000

Do you need assistance with finding a hire purchase or finance lease facilities for new or used capital expenditure projects? XL Business Finance has access to many specialist asset based lenders providing you with competitive deals many of which are not available via the high street banks.

Never has a good asset finance broker been able to add so much value to businesses in this difficult economic climate. There are many reasons why you should use a broker a few of which are provided below.

Many high street banks are only providing hire purchase and finance lease facilities for their own customers that meet a certain criteria. If your business is good enough to meet this criteria then great. However many are not. If you have a good business but perhaps are fully exposed with your existing bank or you would prefer not have all your eggs in one basket there are still a few prime lenders that deal purely with the broker market providing an alternative to the high street banks. These funders are happy to provide 3rd part hire purchase and finance lease deals which sit alongside your existing agreements.

If your business has however has had a number of issues an experienced asset finance broker will be able to package the deal in the best possible light from an underwriters perspective. This ensures that you have the best possible chance of success with the most appropriate finance company. There are still many smaller lessor known finance companies that provide funding for many different businesses assets and circumstances. It is simply a case of getting the correct information and making sure we are dealing with the most appropriate funder.

Car Finance

admin — Wed, 27 Apr 2011 08:25:39 +0000

At XL Business Finance we believe we can be at least just as competeitive as any like for like hire purchase or finance lease quote being provided by most UK based motor dealers.

Any business or director ordering a new or second hand vehicle can expect to obtain funding rates from as little as 3.5%. Nowadays motor dealers try to earn as much in the finance as commercial finance brokers and as such they are not always the most competitive. There is always the exception to the rule especially when a manufacturer is running a special interest free or interest subsidised promotion.

Leasing and early settlement charges

admin — Wed, 20 Apr 2011 08:12:16 +0000

“Can I get a discount for early settlement ?” is a commonly asked question in relation to leasing and hire purchase facilities. The answer depends on the type of finance agreement, the actual finance company and their policies.

If you have an non regulated finance agreement don’t expect big discounts, especially if you are tied in on a fixed rate deal. As a rule of thumb most finance companies will provide a 4% discount for early settlement for a non regulated fiance agreement however they are not obliged to. You are more likely to get a discount on a hire purchase agreement as opposed to a lease.

However we dont think there are not big savings to be gained. As they say “cash is king so you may as well leave the cash in he bank for a rainy day!

Need equipment finance?

admin — Fri, 15 Apr 2011 08:22:34 +0000

Obtaining equipment finance can still be a bit tricky in the current environment. The high street banks are still being very difficult although they can do some fantastic deals for their own customers. However not everyone wants to use their own bank as many business owners understand the merritts of not having too many eggs in one basket. XL Business finance for the right customer can arrange equipment finance that will be just as competitive as many high street banks. This will leave valuable funding lines open with your bank for expenditure programmes that are not available for equipment finance.

Obtaining the cheapest leasing and hire purchase rates

admin — Mon, 04 Apr 2011 16:29:10 +0000

Obtaining the cheapest leasing and hire purchase rates depends not only depends on the strength of the covenant but also on the quality of the information provided. As with any transaction the easier you make it for an underwriter to understand the proposition the more chance you have getting a deal agreed in the first place and therefore the better the chance of getting a decent rate.

Therefore with any transaction a full set of audited accounts should be provided, most recent mangement accountss, 3 months bank statrements, details of any finance agreements coming to the end of the agreement and a clear rational will also help

Bank Loan or Hire Purchase

admin — Tue, 29 Mar 2011 08:23:32 +0000

It is becoming increasingly common for high street banks not to offer hire purchase or finance lease facilities especially for transactions sub £50k and even sub £200k with one bank. Although your bank may offer funding for purchasing plant or machinery they are increasingly doing so by term loans. These loans are not necessarily secured against the assets being purchased but are agreed based on the trading performance of the business and security such as land already being in place. Although you may get a slightly cheaper rate than by going to an independent asset finance broker you run the possibility of tying up future lines and overexposing your business too much with one financial institution. If you can do we would recommended spreading the risk about!

Will my bank give me the best asset finance deal?

admin — Mon, 28 Mar 2011 06:56:03 +0000

Other than a businesses own bank there are still only a few independent asset finance companies offering hire purchase and finance lease facilities. And depending upon which bank you are with you might not get offered asset finance at all. If a bank wants to deal with you then you will get some of the best deals possible. However do you really want to tie up valuable banking lines which may restrict your future ability to obtain funding. If you can get funding via a third party funder it is always advisable to spread it around a bit. You may have to jump through a few more hoops but it will certainly be worth it!