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Archive for the ‘refinancing’ Category

Refinancing existing plant and machinery for one off projects

Monday, October 18th, 2010

As we know the banks are still being difficult when it comes to raising cash for bespoke or one off projects. Whilst you may be able to justify a project from a future profitability point of view unless you have got adequate security lodged with the banks it is more than likely they wont be interested.

At XL Business Finance we are seeing an increase in enquiries for business finance from decent and profitable business needing additional cash. An example was a engineering business’s needing £100k to help with a deposit on a new machine and also to help with the the reorganisation of the factory. The business was able to refinance existing plant and machinery to help raise the additional cash required.

Refinance of existing machinery is a very specialist market and whilst the high street banks occasionally surprise us in terms of what they do it is extremely unlikely they will offer refinance in its purest form. A business that has plenty of equity in a commercial property or has excess headroom in the debtor book is and is offered refinance is only potentially tying up further forms of available finance. A remortgage to release cash or an invoice finance facility by way of factoring or invoice discounting are all valuable options and should be left open for future needs

Tags: business finance, refinance existing plant and machinery
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Asset Refinance Explained

Thursday, May 27th, 2010

Businesses may wish to refinance assets for many reasons. It could be to help with the consideration of a Management Buy Out, it could be to raise a deposit for a new capital investment or it could be to help with working capital if cash is a bit tight. XL Business Finance has been helping businesses for over 10 years to refinance their existing plant and machinery.

Asset refinance is a very specialist market and one that is not traditionally catered for by the high street banks and finance companies. Therefore it is important to know which finance companies specialise in what sector in order to get the best possible value against your kit. There are probably only half a dozen asset lenders operating in the market today and although they are very similar in terms of pricing they have their own niche areas and slightly differing ways of doing things.

As with any asset refinance deal the most important thing is to get a accurate list of kit together. This should include age, make model, description and condition of the kit. Any additional features or enhancements should also be noted to ensure we get the best possible valuation. Depending upon what the kit is we can then go to a variety of different funders that all have slightly differing ways of valuing the kit. It maybe that we have to go to the best valuation in order to make a deal happen. Remember that we can also include kit that is already on finance because it might be that there is some equity that can also utilised.

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Refinance existing plant and machinery and release cash for any purpose

Saturday, May 8th, 2010

It is possible to refinance existing plant and machinery in order to release cash for any purpose ( within reason ) Provided there is equity within your plant and machinery there are a number of finance companies that will advance cash via a sale and lease back or sale and hire purchase back agreements. And provided your business isnt on the verge of going bust you can release cash for most purposes including providing a deposit for a new machine , paying crown arrears of provided working capital to nge better payment terms with your suppliers

However refinancing existing plant and machinery is a very specialist area which the high street banks and leasing companies have absolute no experience or appetite. There are probably only about half a dozen leasing company in the UK that provide such a facility. As it s a specialist area funding comes at a premium so you can expect to pay slightly higher interest rates than you would get via the bank. However with the banks still being difficult when it comes to obtaining funding asset refinance is a viable option for many businesses. Not all types of assets are suitable security and as such it is worth getting an idea of the value of your equipment before spending allot of time and effort providing financials etc. The types of equipment and machinery that are suitable are large chunky items such as printing, packaging engineering, commercial vehicles, coaches, yellow plant and basically any equipment that has a good residual value in the second hand market. Anything that is bespoke to a business tends to struggle to stack up even though it may have initially cost a considerable amount initially.

XL Business Finance will use over ten years experience to get the best possible valuation for asset refinance. Different finance companies have different areas of expertise and we know which one will provide the best possible values for whatever kit it is that your are looking to release cash against

Tags: Asset Finance, refinance existing plant and machinery
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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.!!

Tags: asset refinance, business finance
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Can I refinance Plant and machiery

Tuesday, January 12th, 2010

The good news is thatachinery it is possible to refinance plant and machinery. The even better news is that it is possible to refinance plant and machinery just about for any purpose. There are still many asset based lenders proactively growing their books in the current financial market. This is a stark contrast to the bank owned balance sheet finance companies that seem to still tucked up in their shells. XL Business Finance has been at the forefront of asset based lending for over 10 years and we are one of the UK’s leading experts when it comes to the refinance of plant and machinery.

Refinancing of plant and machinery is a very very specialist market and as a rule non of the high street lenders operate in this market. An asset lender will advance an amount against the value of the plant and machinery and depending upon which finance company you go to there might be a large valuation in their perceived valuations. As an independent finance company , XL Business Finance we know exactly which finance companies are best at financing what sort of asset. For example some finance companies are good at financing printing equipment and their are others that are experts in financing haulage equipment. It is important to get a broker which knows this market well as it will save you a great deal of time and effort going around the houses.

Any offer of finance will be based on a percentage of the trade value or forced sale value (FSV). A typical deal may be based on a eightypercent advance. Unfortunately there is a big difference between trade and retail values in the current climate. An asset based lender can only advance aginst a worse case scenario and good equipment is being sold very cheaply in forced sale situations at auction. This is obviously affecting valuations when it comes to refinancing plant and machinery.

Tags: refinance plant and machinery
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Invoice factoring (3)

Thursday, December 31st, 2009

It has always been said that the biggest problem that any business will face is getting cash out of their customers. Most SME’S will go bust because of inefficient cash flow. Can a business really rely on its customers paying within the normal 30 day credit terms. Probably not. And is it really wise relying on a bank overdraft which will be capped depending on the level of security available. In addition a bank overdraft can be withdrawn at a moments notice and is potentially always repayable on demand! Invoice factoring will provide a evolving credit facility for up to 90 days against 80 – 90% of your unpaid invoices.

Invoice factoring is a form of cash flow facility which includes factoring with credit control, invoice discounting and confidential invoice discounting. An asset based invoice factoring company may also provide stock and asset based finance. These forms of cash flow products will grow with your business and provide far more working capital than any bank overdraft will be able to provide. Which type of facility is best for your particular requirements depends on how long your business has been trading, the number and the quality of your invoices, the location of your business, if you require credit control and whether your business is profitable or not!

In addition there are over 50 factoring and invoice discounting companies all offer similar products and services. By asking a few simple questions XL Business Finance can narrow the funders to two or three of the ones most suitable for funding your business. We have over 10 years of experience in helping many requirements with their own particular and unique set of circumstances. The good news is that this will not cost you a penny. Our service is absolutely free! Please feel free to give the Managing Director Mark Redman a call on 07748 635 206 to find how we can help you.

Tags: Factoring, invoice discounting, invoice factoring
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Refinance existing plant and machinery

Wednesday, December 30th, 2009

It is possible to refinance already owned plant and machinery to release cash for just about any purpose. There are only a few finance companies capable of doing such financial transactions and most of them are independently owned. It is very unusual for a high street finance company to do such transactions. They simply don’t have the expertise to carry out such transactions. It is not as simple as raising an invoice from the company to the finance company. there is faf more to it than that. XL business Finance has been trading for over ten years and is one one of the uk’s leading asset finance broker. We genuinely believe that if we cannot sort the finance than it cannot be done. To find out how refinancing existing plant and machinery can benefit your business then read on.

Most asset lenders provide funding on a similar costing which incidentally is considerably higher than any bank funding. This is because the asset based lenders will borrow money from the banks at a normal commercial rate put on a margin and lend it to businesses wishing to release some cash. These asset lenders your their experience and expertise to lend businesses money which the banks are not prepared lend. These specialist lenders know exactly how to value equipment. They will obtain valuations from professional valuers, trade dealers and use their previous experiences in particular equipment. Based on this info they will lend a percentage as what they think is the trade value. The documentation is a little more complex than a straight forward hire purchase or finance lease transaction. These finance companies also know their exit route. If a piece of kit comes back from a distressed business they know how to dispose of the kit quickly and at the best possible price. This will also protect the directors whom may have provided personal guarantees

Tags: hire purchase, refinancing existing plant and machinery
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Refinancing Printing Equipment

Sunday, November 29th, 2009

XL Business Finance has been helping printing companies raise cash against unencumbered printing equipment or equipment which is coming to the end of its finance. The ability to raise cash is providing a life line for many cash strapped businesses especially as the banks are still being very selective in whom they will advance money. In fact any industry sector which has large and expensive items of capital equipment, such as printing, is in a fortunate position.

Cash can be raised just for about any purpose, however if your business is struggling you may expect to pay higher interest rates than if your business is trading well. Many asset based lenders will only advance money if your business has had difficulties however the finance company will probably need to make a few checks to verify the future viability of the business. You may also find that the loan to value may be reduced as you will be considered a higher risk. Business that are trading well may command a more favourable rate however don’t expect bank rates. Refinancing capital equipment is s very specialist market and as a rule of thumb high street banks and finance companies wont refinance equipment. More profitable businesses might want to refinance equipment to provide a deposit for another project . We are seeing more and more businesses wishing to refinance to reduce their exposure with the banks or where they have been refused finance from the banks because of their outstanding exposure.

It may even be possible to use cash from refinancing in conjunction with factoring or invoice discounting to provude a new funding package.

Tags: Factoring, invoice discounting, refinance equipment
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How do I refinance existing Equipment

Saturday, November 21st, 2009

More and more businesses are looking to refinance existing equipment, plant and machinery to assist we cash flow. XL Business Finance has been helping customers for 10 years and is one of the UK leading independent finance companies in this area. Not only can refinancing equipment provide cash for any purpose and provide financial freedom, it is quite possible to refinance plant and machinery already on finance and provide a massive cash flow benefit by having a lower monthly payment.

The first thing we have to do is obtain a valuation for your existing machinery. Any heavy goods such as engineering equipment, printing equipment yellow, goods commercial vehicles, buses and coaches are all suitable security. We will age make model and any details of any extras which might positively enhance the valuation. We will then obtain valuations for various different sources. As this doesn’t cost anything we will only have indicative valuations only. XL Business Finance has the expertise and knowledge in various sectors to know which finance companies and valuers will provide the best valuations in various sectors

If the valuation stacks up we will obtain accounting information and bank statements to obtain a funding facility. If equipment is already on finance if we can obtain copies of the finance agreements and we will be able to calculate approx settlement figures and if there is any equity in any of the equipment. It is possible to refinance the equipment by ay of a sale and lease back, sale and hire purchase back and a loan and chattel mortgage. Which facility is best for you depends upon the written down value in your accounts and your preferred finance method.

Tags: finance lease, refinance plant and machinery
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Refinance existing plant and machinery

Wednesday, November 4th, 2009

The ability to release cash from the equity in existing plant and machinery is providing a life line for many UK based businesses. Cash can be released for just about any purpose and so long as there is some value in your equipment a deal can be done for just about any type of company irrelevant of its trading performance.

It is even possible to release cash even if your existing finance agreements have not reached the end of their term. Providing you have a copy of your finance agreement XL Business Finance will be able to do a rough calculation of your settlement figure. If you can also provide a list of your equipment we can obtain a rough valuation for refinancing purposes. As a minimum we will need age , make and model of the equipment you wish to refinance. There re a number of potential finance companies that are able to refinance existing plant and machinery and all use slightly different methods to value the kit for refinancing purposes. Remember that this is a very specialist market asset refinnace and that any valuations are obtained on a worse case basis or forced sale basis. XL Business Finance has the expertise to approach the finance that will provide the best valuation for your particular equipment. One finance company may be strong in the construction market for example whereas other finance companies might be good at printing equipment. We guarantee we get you speaking to the most appropriate funder for the type of equipment to be refinanced and for your particular circumstances.

Tags: refinance existing plant and machinery
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Archive for the ‘refinancing’ Category

Refinancing existing plant and machinery for one off projects

Asset Refinance Explained

Refinance existing plant and machinery and release cash for any purpose

Using a broker to refinance capital equipment

Can I refinance Plant and machiery

Invoice factoring (3)

Refinance existing plant and machinery

Refinancing Printing Equipment

How do I refinance existing Equipment

Refinance existing plant and machinery

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