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Asset Finance Leasing

Monday, November 9th, 2009

The last 12 months have certainly been difficult in terms of organising asset finance. Finance companies are taking are very strict approach when it comes to underwriting. Many of the bank owned  high street finance companies  are only lending to their own customers and some are not lending at all. Bank of Scotland and Barclays appears not to be providing any leasing deals at all and others are doing so on a restricted basis.  HSBC will only provide facilities of over a £100k and Lombard are only lending to Nat West and RBS customers.  Therefore thee are only a few options when it comes to hire purchase and asset finance leasing. Thankfully XL Business Finance has over 10 years experience in the market and has the means to add value to any capital expenditure product by knowing which companies are in the market and which are not.

Although there are signs that the economy is picking up we are still technically in a recession and I believe that it will be many years before we get back to how the asset finance market was before the credit crunch. It is virtually impossible to obtain funding for intangible investments unless you have a very strong balance sheet or you are prepared to pay a very high interest rate and provide personal guarantees. Therefore computers, telephone  systems  and any high tech equipment is even more difficult to obtain funding for in this difficult market. There are a few finance companies prepared to advance £10k per customer on this basis but it is no guarantee.

Otaining  finance for what is perceived to be machinery and equipment which you may think has good value for security purposes can also prove difficult. Unless you can get finance from a high street funder which look at the strength of your balance sheet you might be caught between a rock and a heard stone.  More on this later.

asset finance leasing

Wednesday, September 16th, 2009

Asset finance leasing is becoming increasingly more difficult to organise. With the exit of Lombard and Hitachi from the broker market there are only a few funders remaining in the market place. Many high street banks have their own asset finance division but they tend to do only the bigger deals over £50,000 for their own customers. If the deal is for under £50,000 they will potentially push the customer down the loan route.

The problem with this is that it could restrict a businesses ability to organise future non asset based lending.  What is the point of utilising  valuable credit lines and funding asset purchase via loans instead of using a third party funder to provide a hire purchase or finance lease facility. In our opinion any capital expenditure is best suited to a hire purchase or finance lease facility which will leave the bank credit lines available for a rainy day.

We say it time and time again. Use the bank for clearing facilities, an independent for your factoring and invoice discounting. Remember if you need an overdraft it wont grow with the business like factoring and invoice discounting and any overdraft is potentially repayable on demand. Using a third party leasing company will ensure that you don’t have too many eggs in one basket and you are not exposed too much to any one financial institution.

There are still third party finance companies open for business. Getting deals agreed isn’t as easier as it was 18 months ago however a good independent finance broker will be able to guide you through the pros and cons of the different finance companies.

New Start Business Finance

Wednesday, December 10th, 2008

Obtaining finance for new start businesses can be tricky at the best of times. High street banks and finance companies have virtually shut up shop. And at the best of times they would require costly projections and business plans, get the customer to jump through hoops and probably say no. Thankfully there are still a handful of lesser known smaller companies willing to look at asset finance leasing for new start businesses. Providing the proprietors are home owners with a bit of equity and have a relatively clear personal credit profile it may be possible to obtain finance up to a certain level without too much of a problem. Admittedly personal guarantees will be required and the rate will be higher than a high street bank but might enable the business to borrow in a tax efficient manner and obtain the funding for the much needed piece of kit.


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 Limited are authorised and regulated by the Financial Conduct Authority FRN 718737).

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


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