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Posts Tagged ‘asset refinance’

Refinancing-Explore the opportunity

Friday, August 3rd, 2012

With banks continuing to squeeze customers we believe XL Business Finance is well placed to relieve the pressure! Refinancing plant and machinery  is  one of our key services and areas of expertise. Currently this is being used to great effect in a number of sectors. Printing, engineering, transport and any other industry sectors  that uses plant and machinery can benefit.  We are convinced that many of our customers if asked , would benefit from a £25k, £50k, £100k, £250k or even more capital injection without having to go back to the bank cap in hand to their bank!



Asset Refinance available from Prime funder

Friday, January 6th, 2012

Until now stand alone asset refinance has only been available from specialist  and traditional more expensive finance companies.  However, a prime funder has now entered the market offering to refinance plant machinery and tangible assets providing it is for the right reason. Funds might be required for expansion, deposit on a new machine, an MBO or an MBI.

The balance sheet of the business must be reasonable and the business must have been trading for more than three years. Providing there is a strong rationale for the refinance and the equipment has good value we have a very good chance of obtaining some funding. Businesses which are struggling and need to refinance kit because they  and are struggling to pay creditors may still be able to obtain funding but it will be via a very different type of lender.

Normally it is possible to provide an indication of what is available within 24 hours. All we need to get the ball rolling is a list of plant and machinery to include age make and model. We can then get a value of the kit for refinancing purposes which enables a quick assessment of the viability of the refinance. XL Business Finance is one of the Uks leading funders in asset finance and refinance and we have 15 years experience in doing such deals.




Organising retrospective asset finance

Wednesday, November 2nd, 2011

Ever wished you had funded your cap expenditure requirements instead of paying cash. Did you know it is possible to organise retrospective hire purchase and finance lease deals within 3 months of purchase?

So many businesses come to us asking for additional working capital following cash purchases of  plant and machinery. In today’s economic climate trading conditions can rapidly change and it makes prudent business sense to fund as much as possible. Cash is King as they say.  Funding is available at decent rates, subject to credit of course and  providing you meet the funders lending criteria. If the purchase is more than 3 months ago don’t worry, finance may still be available but it is a different type of funding. Asset refinance is provided by a number of specialist asset based lenders and  it is an area that XL Business Finance has many years experience.

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

Using a broker to refinance capital equipment

Wednesday, March 31st, 2010

We totally understand the need to get the best possible deal on any business finance agreement. It is no different whenit comes to raising cash against unencumbered plant and machinery. No doubt any business wishing to refinance plant and machinery will go to their banks first . When they realise that this is an area of finance the banks cannot help with they will probably search the internet for inappropriate solutions. Any search of google will reveal hundreds of companies offering cash against unencumbered assets. The problem is that most of these will be brokers and when it comes to refinancing existing machines and equipment having too many brokers involved can have a detrimental affect on your credit aapplication

We have seen one deal recently where up to eight brokers have introduced the same the deal to one finance company. And the worrying thing was that some of these introducers were in fact mortgage brokers with no experience in the asset finance market. At the end of the day there are probably only half a dozen lenders in this market so all paths lead to the same funder. If a finance company starts to get the same deal from many different sources they will not take the deal seriously because they will know the deal is being touted around the market. They have nothing to loose by providing onerous terms and conditions and their approach will be very much take it or leave it offer.

At XL Business Finance we have over 10 years experience in providing equipment refinance solutions. We do things slightly differently. Firstly we know all the plant and machinery valuers which the different finance companies use. We wll go iect to these valuers and get an idea of the level of security in the deal. We then provide a realistic opinion as to the amount of cash that can be raised against the kit in questions. We will then provide a proposal to the most appropriate funder having already dome our homework on the kit. A clean and realistic application will have a much greater chance of success.!!


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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