Refinancing existing machinery has got to be the most enquired about business finance product currrently available. As businesses are having their credit lines and overdraft squeezed by the high street banks they are looking for alternative forms of finance. The best sectors are printing, engineering, haulage , recycling and any other sector which uses heavy plant machinery and equipment. The process is relatively straight forward. The finance company obtains a valuation for refinancing purposes. This will be a forced sale value usually obtained from a professional valuer. Subject to status the finance company wil advance 60-80% of the forced sale value. It will be necessary to obtain a debenture waiver, landlords waiver and proof of title before payment can be made. Although this is a very specilaist markert not all asset finance companies are the same and all have their little quirks in terms of what sectors they like and how they percieve the value of certain assets. XL Business Finabnce has the expertise and knowledge to obtain the best deal in terms of funds out and overall structure!
Archive for 2009
Refinancing existing machinery
Monday, February 9th, 2009Payroll Finance
Tuesday, February 3rd, 2009At .85% per month Payroll Finance isn’t the cheapest form of funding however when you consider that there are no personal guarantees required and that the payroll funder is classed as a trade creditor it is proving a viable alternative to a bank overdraft. There is no guarantee that banks are even willing to grant overdrafts and they more often than not require additional and onerous security. Payroll finance provides up to two months of the gross monthly payroll on a revolving credit facility. It can sit alongside traditional cash flow facilities such as factoring or invoice discounting. Surely less reliance on the bank has got to be a good thing in these difficult times!
Stocking Finance
Monday, January 26th, 2009It appears businesses are increasingly looking for additional means of funding working capital other than the their bank overdraft. Stocking finance is a viable addition to taditional cash flow finance facilities. Stocking finance is usually provided in conjunction with a factoring or invoice discounting facility. Not all factoring or invoice discounting companies povide a true stocking facility. All say they do but most only provide funds against stock to provide an over advance of equal to and no more than the total debtor book. Furthermore they wil reduce the advance over an agreed period back to the agreed payment of the debtor book. IE 85-90%. There are only a handful of true revolving stock facilities where an agreeed percentage of the stock is permanently advanced on a revolving credit basis. Remember this facility must be used in conjunction with the factoring or invoice discounting facility.
Euro Deals
Monday, January 12th, 2009It may be worth mentioning it is possible to write larger hire purchase and leasing deals in Euros. In view of the very weak pound a business may be better off drawing the funds in Euros and paying the finance company in Euros. This will only work if its operates a euro account which will therefore eradicate any exchange rate fluctuations. Obviously any business equipment finance facility is subject to credit approval!
