Whilst finance companies and banks continue to remain ultra cautious in the current economic climate we are constantly looking for innovative finance solutions to help businesses with their new and used capital expenditure programmes. Unless a business is very profitable and has a very strong balance sheet it is remaining increasingly difficult to obtain funding from the high street finance companies. It seems they are looking for reasons to decline deals as opposed to looking for reasons to agree deals. Who can really blame them when they are suffering unprecedented bad debts and they are being inundated with more proposals than they can actually cope with.
One of the ways XL Business Finance has been helping customers with their capital expenditure plans is by looking at existing equipment and machinery to provide additional security. If the high street funders are not playing ball there are a number of funders that will look to ways of doing deals but they need to be reasonably asset secure. Therefore we can look to take a charge over unencumbered kit to provide additional security for the same funder or it may even be possible to refinance existing assets or machinery with one funder to provide an acceptable deposit for another funder. These structured deals obviously work well where there is substantial kit with good residual values. Therefore printing engineering, packaging, manufacturing businesses all work extremely well.
