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
