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Archive for the ‘Sale and leaseback’ Category

Scale-up Businesses struggle to find funding

Monday, January 29th, 2018

A scale-up business is recognised as a young organisation with at least 10 employees which grows by an average of 20% each year. Scale-ups are of huge importance to the UK economy providing jobs, inward investment and innovation.

However, scale-up businesses often find it difficult to source finance from mainstream funders due to a lack of trading history, asset value or limited management experience.
Grants and regional funding options exist, but many are for very early-stage development rather than growth. Bank Loans are an option for companies with solid cash flow that can support the interest payments. However, new global capital regulations designed to make banking more stable have made it harder for banks to offer large overdrafts, and so alternative options are often required by businesses looking to raise finance.

Invoice finance is a popular way for scale-up business-to-business (B2B) firms to unlock vital working capital as it grows with your business. Working capital finance options for high-growth business-to-consumer (B2C) firms are less obvious. However, a relatively new type of lender is emerging offering merchant cash advances where businesses repay a fixed percentage of revenues.
Many crowdfunding platforms exist, including equity and non-equity options. When it comes to investing in new equipment, there are plenty of options available. Asset finance, otherwise known as asset leasing or lease rental, has been around for many years and for good reason, but not everyone is aware of how it can benefit them.

Asset leasing is a tax-efficient and flexible way to purchase the equipment you need without compromising your cash flow, and is suitable for all industry sectors and any size of business. Terms are available from one to five years with only a minimal deposit required in most cases.

Ultimately, there’s no easy answer for financing a scale-up and businesses may need to share the risk and look at numerous options. It does depend on your approach to risk, your attitude to giving away part of business, and your company’s ability to finance a debt.

To see how we can help you grow your business by providing funding options to suit your needs, contact XL Business Finance today for an initial discussion.

Manchester – 0161 980 0577
London – 020 3301 4540
xlbusinessfinance.co.uk

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!

 

 

Sale and leaseback

Saturday, April 16th, 2011

Sale and lease back involves the refinancing of plant and machinery to enable a business to raise cash for any puropse. XL Business Finance is undertaking a number of these projects for a variety of different reasons. At the moment we have 4 deals going through this week however the interesting point is that we are using 3 different fiannce companies. All finance companies have a niche or a comfort zone with a particular sort of customer, sector or type of equipment. Which one is best for your business depends upon your own personal circumstances.

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

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