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.
