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Posts Tagged ‘refinancing’

How to value equipment for refinancing purposes

Tuesday, March 22nd, 2011

Valuations for refinancing of plant and machinery can vary vastly from customers own valuations  and expectations. This is why.  Refinance of assets is provided primarily by asset based lenders. Their primary concern is with the value of the kit and their exit route. They are not balance sheet lenders and whilst they will require evidence of serviceability the strength of your accounts is not their main concern.

In the event of the finance company having to take the equipment back they want to know that they can quickly sell the equipment within a relatively short time frame of usually 3 months. And what someone will pay for machinery in a forced sale situation can be a million miles apart as to what you may have to pay for the same piece of kit from a supplier. Unfortunately some directors suffer from owneritus being the condition of thinking their equipment is worth far more than it actually is

Using assets to provide additional working capital

Wednesday, March 9th, 2011

Any business involved in heavy manufacturing maybe able to release cash from the value of their plant and machinery. Providing there is value within the machinery cash can be released just about for any purpose. It could be to provide additional working capital, it could be for a one off project or the cash can be used to pay the tax man. Refinancing of existing plant and machinery is a facility which is often overlooked as it is is one that is not traditionally provided by the high street banks and finance companies

XL Business Finance has been helping businesses for over 10 years refinance plant and machinery. In the current economic  climate it is perceived that the high street banks are not supporting businesses with their funding requirements.Many business are therefore looking at alternative ways to provide additional working capital or cash for one off projects.

Banks however are not traditionally risk takers and do not have the expertise to provide asset refinance in its purest form. Refinancing plant and machinery is a very specialist area in which there a few funders that have the expertise to do the job properly. There are 3 ways that assets can be refinanced. Loan and chattel mortgage, sale and hire purchase back or sale and lease back. Which facility is best or you depends upon the type of equipment, and the written down value of the kit in your books.

Refinance printing Machine

Friday, February 4th, 2011

XL Business Finance associate Chad Monsirrims checks a serial number following another successful refinance

Attention all Car owners

Friday, January 14th, 2011

Are you looking to raise cash quickly? It is now possible to organise a short term business  loan offering your car as security.

If you have a luxury car which is free of finance , you can release the money or equity tied up in your car on a short term basis. This is different from a traditional refinance agreement that provides funding on a hire purchase agreement over a number of years. The finance company will take your car as security which will be stored in a secure facility.

Whilst this kind of offering will not be an option to everyone there are plenty of business owners out there that may have a second luxury toy or car. As you can imagine APRs wont be the cheapest however they never are when it comes to bespoke and creative funding. It does however provide a quick fix alternative to the bank funding which in the current climate isn’t available to everyone.

How it works. A trade value of the car is obtained from the finance company. A percentage of this trade value is  is provided on a short term loan. There are no monthly repayments. Interest accrues on a monthly basis and the finance is repaid at the end of the loan agreement typically 3-6 months. This kind of lending is ideal for customers that maybe have a guaranteed lump of cashing coming to them but need something to keep them ticking over

 
 
 

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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