As we know the banks are still being difficult when it comes to raising cash for bespoke or one off projects. Whilst you may be able to justify a project from a future profitability point of view unless you have got adequate security lodged with the banks it is more than likely they wont be interested.

At XL Business Finance we are seeing an increase in enquiries  for business finance from decent and profitable business needing additional cash. An example was a engineering business’s needing £100k to help with a deposit on a new machine and also to  help with the the reorganisation of the factory. The business was able to refinance existing plant  and machinery to help raise the additional cash required.

Refinance of existing machinery is a very specialist market and whilst the high street banks occasionally surprise us in terms of what they do it is extremely unlikely they will offer refinance in its purest form. A business that has plenty of equity in a commercial property or has excess headroom in the debtor book is and is  offered refinance is only potentially tying up further forms of available finance. A remortgage to release cash or an invoice finance facility by way of factoring or invoice discounting are all valuable options and should be left open for future needs

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.

It is possible to refinance existing plant and machinery in order to release cash for any purpose ( within reason ) Provided there is equity within your plant and machinery there are a number of finance companies that will advance cash via  a sale and lease back or sale and hire purchase back agreements. And provided your business isnt on the verge of going bust you can release cash for most purposes including providing a deposit for a new machine , paying crown arrears of provided working capital to nge better payment terms with your suppliers

However refinancing existing plant and machinery is a very specialist area which the high street banks and leasing companies have absolute no experience or appetite. There are probably only about half a dozen leasing company in the UK that provide such a facility. As it s a specialist area funding comes at a premium so you can expect to pay slightly higher interest rates than you would get via the bank. However with the banks still being difficult when it comes to obtaining funding asset refinance is a viable option for many businesses. Not all types of assets are suitable security and as such it is worth getting an idea of the value of  your equipment before spending allot of time and effort providing financials etc. The types of equipment and machinery that are suitable are large chunky items such as printing, packaging engineering, commercial vehicles, coaches,  yellow plant  and basically any equipment that has a good residual value in the second hand market. Anything that is bespoke to a business tends to struggle to stack up even though it may have initially cost a considerable amount initially.

XL Business Finance will use over ten years experience to get the best possible valuation for asset refinance. Different finance companies have different areas of expertise and we know which one will provide the best possible values for whatever kit it is that your are looking to release cash against

The ability to release cash from the equity in existing plant and machinery is providing a life line for many UK based businesses. Cash can be released for just about any purpose and so long as there is some value in your equipment a deal can be done for just about any type of company irrelevant of its trading performance.

It is even possible to release cash even if your existing finance agreements have not reached the end of their term. Providing you have a copy of your finance agreement XL Business Finance will be able to do a rough calculation of your settlement figure. If you can also provide a list of your equipment we can obtain a rough valuation for refinancing purposes. As a minimum we will need age , make and model of the equipment you wish to refinance. There re a number of potential finance companies that are able to refinance existing plant and machinery and all use slightly different methods to value the kit for refinancing purposes. Remember that this is a very specialist market asset refinnace  and that any valuations are obtained on a worse case basis or forced sale basis. XL Business Finance has the expertise to approach the finance that will provide the best valuation for your particular equipment. One finance company may be strong in the construction market for example whereas other finance companies might be good at printing equipment. We guarantee we get you speaking to the most appropriate funder for the type of equipment to be refinanced and for your particular circumstances.