How quickly will I get a credit decision?
Each decision is based on your own situation, but for proposals under £100,000 usually within three working days. Larger, more complex transactions will naturally take longer.
Does my business need historical profit trends to raise finance?
This will depend on the provider.
Most providers will look at the credit history of the business and analyse trends in key financial ratios. They will also want to understand your plans to help satisfy them that you can meet your obligations under the terms of the finance agreement. Repossessing any asset is always seen as a last resort although many providers do have good re-marketing capabilities should they need to enforce this security. These providers will often base part of their lending decisions on the asset particularly if they are specialists in financing that type of equipment.
Can assets be based overseas?
Yes, potentially.
Providers should try to be flexible and provide solutions-based finance. This is a complicated area, so it’s important that you contact your provider find out what’s possible.
Do I have to place a deposit?
This will depend on the provider and the type of asset you want to purchase.
Many providers offer flexible structures which match your cash flow and the asset life and asset use. It also depends on the level of security required.
What information do lenders require to make a credit decision?
It depends on how much you want to borrow and for what purpose.
Most finance salespeople will be familiar with the underwriting process and should discuss your business in detail to get a better understanding of your needs. They can then package your credit application in the most appropriate way to give you best chance of getting an acceptance from the underwriters’.
Why don’t I borrow from my bank?
You can but a loan from the bank will reduce your ability to raise funds for other purposes while it’s outstanding.
Asset finance protects bank credit lines needed for working capital, debtor finance, and expansion. Security arrangements such as debentures and covenants are often a pre-requisite of any advance.
What assets can I finance?
Any assets that help your business to run and grow successfully can be financed.
- IT products and services including software, PC’s, servers, networks, storage, data processing
- Office refurbishments, telecoms equipment and furniture solutions
- Hi-Tech equipment including radio and satellite transmission equipment
- Medical equipment
- Vehicles such as cars, light commercial & heavy goods vehicles including vans, trailers and company cars as well as coaches and buses
- Manufacturing, engineering, construction and plant hire equipment such as yellow plant, print machinery and machine tools
- New and used corporate and commercial aircraft, ground support equipment and ancillary aviation equipment
- Sail and power yachts
- And more
Why not use my own working capital?
With a low interest rate environment this is a consideration.
You will be able to claim the capital allowance and will take title to the equipment. However, spreading the cost of an asset over its useful working life makes sound economic sense. It also enables you to use the cash available to invest in other key business areas which will support growth.
What is asset finance?
Asset based finance is an advance that is secured on the asset.
You make regular repayments over an agreed term. Because of the security, asset finance is often more flexible than other forms of finance and you can fund up to 100% of the asset value in certain circumstances. The repayments can also be matched to the life of the asset to suit you.
FAQs
Do you have a question?
You may be able to find the answer in this section. Alternatively, pick up the phone and call us. We’ll be pleased to have an informal conversation.