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Posts Tagged ‘Sale and leaseback’

Refinancing valuable antiques

Tuesday, March 13th, 2012

We normally think of sale and leaseback or sale and HP back facilities only being available for heavy plant and machinery such as engineering and printing equipment. For the right reasons it is possible to refinance rare and valuable antiques. A half million pound refinance facility has been transacted against antiquities and a hundred thousand pounds has been raised against Andy Warhol paintings. Not all finance companies are able to provide such facilities but it is worth knowing if the need arises.  XL Business Finance has access to many bespoke finance products

 

Sale and leaseback

Saturday, April 16th, 2011

Sale and lease back involves the refinancing of plant and machinery to enable a business to raise cash for any puropse. XL Business Finance is undertaking a number of these projects for a variety of different reasons. At the moment we have 4 deals going through this week however the interesting point is that we are using 3 different fiannce companies. All finance companies have a niche or a comfort zone with a particular sort of customer, sector or type of equipment. Which one is best for your business depends upon your own personal circumstances.

Is it Possible to refinance plant and machinery via a prime funder?

Friday, March 11th, 2011

For the right customer it may now be possible to obtain asset refinancing via a high street finance company. Asset refinance has been a very specialist market up until now. But are things about to change?

Probably not but if you have a very very strong balance sheet and you are looking to refinance for positive reasons then it just may be possible. The flood gates are certainly not going to open but it is certainly worth knowing about.

Asset refinance has always been a specialist area because there are so many pitfalls from the funders perspective compared with just taking an invoice direct from a supplier. With a traditional hire purchase or finance lease transaction it is so so more complicated and an area that the high street have traditionally shyed away from.

The biggest hurdle that a finance company must overcome is obtaining an accurate  value for refinancing purposes. This must be a realistic value and should the plant or machinery come back to the finance company in a forced sale this value would need to be achieved in a realistic time frame for the benefit of all concerned.

The finance company must ensure that they get good title to the equipment by ensuring that they have the necessary debenture waivers and ensuring the business can prove that the kit isn’t already on finance.  Documentation is also slightly different as there is the possibility of doing the deal on sale and hire purchase back, sale and lease back or loan and chattel mortgage. Which is the best depends on the circumstances around the asset refinance and each deal can be different

 
 
 

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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