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Posts Tagged ‘refinancing existing machinery’

Restructuring Finance

Tuesday, October 6th, 2009

Many businesses are struggling for cash flow in the current  difficult trading conditions. The ability to ease the monthly debt burden is a top priority of many finance and  managing directors. Thankfully there are many ways XL Business Finance can assist to ease the pressure.

The biggest problem is the ability to collect cash from customers who themselves struggling for liquidity. Combined with the reduction of credit limits this can produce a double whammy in terms of having a negative affect on cash flow. Not all factoring and invoice discounting companies are the same. Far from it. XL Business Finance has helped many businesses choose the correct factoring or invoice discounting company for their particular needs. In addition we have help plenty of businesses switch to a more flexible factoring company.

Another way we can add value is to look at the monthly hire purchase and leasing payments. It might be possible to restructure these payments for a cheaper monthly outgoing. And if there is enough value in the equipment it may even be possible to release cash from the  equity from within the machinery. It must be pointed out that refinancing existing machinery is sometimes at a premium in terms of interest rate and as such we can provide honest and impartial advice as to whether this route will work or not.

Payroll Finance

Tuesday, July 14th, 2009

Payroll Finance sounded too good to be true. Unfortunately that is exactly the case. Smartflow Payroll Finance is now in administration. Although an unsecured payroll finance facility appeared very attractive perhaps it was always destined to fail or is it another victim of the credit crunch?

Payroll funding provided a finance facility with up to two months of a businesses gross payroll. For example if the gross payroll was £100k a facility of up to £200k may have been possible. On the basis no personal guarantees were required from the directors the facility provided a viable alternative  to bank overdrafts. It also provided an alternative for busineses that were unable to use factoring or invoice discounting facilities as a means to fund its working capital requirements. Furthermore as Smartflow was providing a service they were in fact a trade creditor and as such it did not affect any of a customers banking covenants.

As with any of these specilaist funders Smartflow will have gone into the market to borrow funds and lend them to their customers at higher rates. Therefore the rates were expensive, howver as the facilities were unsecured they were certainly not excessive. It is my guess the high rates attracted the poorer covenants and it would only take one or two deals to fall over and the rest his history.

The problem now is that the demise of Smartflow potentially leaves many customers with a funding gap. XL Business Finance, as a specilaist independent broker has been busy helping customers restructure their finances. In extreme cases we have recommended that advice be taken from a corporate recovery specilaist who  can help with any VAT and PAYE arrears which may have occurred. Refinancing existing machinery is always an option but is only workable if there is value in the equipment. Alternatively funding via the Enterprise Finance Guarantee (EFG) scheme may be possible. Obviously factoring or invoice discounting is always an option. Even if you have been told you are not eligible it is always worth contacting us because there are many specilist funders capable of doing deals the high street banks dont want to fund.

Are the banks putting pressure on you due to the Credit Crunch

Tuesday, March 24th, 2009

Running a busines is a challenge at the best of times and keeping cash flowing and paying suppliers and staff is a constant juggling act. This has never been more relevant than in the current economic climate where raw materials , energy and fuel costs and a squeeze on credit are putting pressure on business owners.

XL Business Finance has access to a number of funders who can provide you with flexible funding solutions that can release cash tied up in your company and releive some of the pressure you face every day in business.

refinancing existing machinery

invoice discounting


payroll finance

Refinancing existing machinery

Monday, February 9th, 2009

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!

Happy New Year

Monday, January 5th, 2009

Looks as though XL Business Finance will be hitting the ground running in the new year. We are handling an unprecedented number of enquiries for businesses  refinancing existing machinery. Deals vary from a small bakery wishing to reduce its £15k OD with the bank right through to a 10m turnover engineering company wishing to raise £250k  working capital for new contracts in 2009. No matter how big or small your equipment, so long as it has some value it may be possible to release some equity. Have a great 2009!

Tis the season of Refinance

Monday, December 1st, 2008

Batten down the hatches! Christmas is coming!  Sales down, bank balanace in the red. Just what a faltering economy needs is a shut down for two weeks over the Christmas period. How is your cashflow going to survive until the middle of January? Well we are currently receiving an unprecedented number of enquiries about refinancing existing machinery. So long as a business asset can be indentified and it has a value, it can be refinanced. We can even refinance equipment which is already on finance with another funder. So long as it has equity a deal can be done. We have even done deals where we have taken out existing finance companies providing a large lump of cash for working capital and provided a lower monthly payment.


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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