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Print Refinance and Factoring Package

Friday, February 4th, 2011

Chad Monsirrims continues to look for a serial number following a refinance package and provision of a new factoring facility for a Manchester based print company

A Manchester print finance company needed to restructure their finances following an accumulation of VAT and PAYE arrears totalling approx £35k. Their existing Komri printing press had only 18 months to go with their existing funder. XL Business finance was able to refinance the machine and provide enough money to repay the existing leasing company , pay the VAT and PAYE arrears and also provide a surplus for additional working capital. Happy days.

In addition the business switched to a more flexible factoring company to provide additional working capital. The printers existing bank were severely restricting cash flow due to a difficult trading period, hence the crown arrears. A change in factoring company and the refinance of the existing press gave the business a new lease of life.

At one point the company was considering injecting personal cash secured against the press. Whilst this seems a good idea , obtaining title in a refinance situation can present many pitfalls. If the documentation was not completed correctly it may be possible that they could be accused of selling the press under preferential terms resulting in the transaction being null and void. It would also been imperititive that the customer got the right supporting documentation. If you do not get debenture waivers , proof of title etc it may be possible that a transaction be deemed null and void in the event of an insolvency. A specialist refinance company ensures that all this is correctly boxed off and that there can be no repercussions down the line.

 
 
 

XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

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