Asset Finance could help preserve your business capital, with no upfront costs.
Do you have a bespoke finance requirement that requires a hassle-free funding solution?
Our wide reaching relationships with funders and investors enables us to tailor a bespoke financial package for you to achieve your goal.
Asset-based lending is a form of asset-based finance that uses assets on your balance sheet as security against lending.
This includes physical assets such as:
– debtors
– stock / equipment
– machinery
– property
It can also include intangible assets such as intellectual property (IP).
Flexible: There are few restrictions on how you can spend the facility.
Quick: If you meet the eligibility criteria, it can take as little as four weeks to receive the money.
Retain control: You can borrow and keep hold of equity.
Options: You can use other forms of finance alongside asset-based lending.
Stable: Your terms for repaying the money you’ve borrowed can be fixed, allowing for better, clearer planning.
Cash flow: Improve the money you have coming in by leveraging the value of untapped (unencumbered) assets.
We aim to give our clients as much information about each service as possible to help them make an informed decision on their next move.
Below are some frequently asked questions about Asset Backed Finance.
Are you an established business with assets and a trading history?
Without assets or a trading history, lenders will not be able to lend your business money.
Do you have assets of value on your balance sheet?
Their value could reflect the amount of finance you’re eligible for.
Here are some important questions you’ll need to consider before proceeding with borrowing from an asset-based lender:
– How long is the borrowing period?
– What is the interest rate on the facility?
– What is the advance rate against the various assets?
– How much will I pay for the finance facility in the long run?
– Are there charges for early repayment?
If you need further information please don’t hesitate to contact us
Your credit report
Lenders will conduct credit checks and due diligence to determine your eligibility. A hard credit check will show on your credit report and may affect your credit rating.
Charges
If you default on payments or attempt to pay off the loan early, you may face charges. Late payments may also affect your credit report.
Potential to lose assets
If you fail to make your repayments, the lender may seize the asset you’ve put up as security and sell it.
Asset-based lenders base their decision on: your financial performance, your trading history and the value and type of assets you hold. In your financial statements, this information must be set out clearly and show your ability to repay the facility.
Do you have commonly sold inventory?
If you’re using stock or inventory as security for lending, you need to show that you’ve sold it. This shows you have money coming in regularly to pay off your facility.
How much are you looking for?
Asset-based lenders will consider how much finance you’re seeking. Typically, they provide facilities of £5m or more. However, some providers will also offer facilities worth £1m and above.
We are interested to hear about your requirements. Don’t be afraid to explain in more detail if you wish as the more information we have will help us to quickly provide you with advice or suggestions. We are here to help.
Do you have a client that is in need of a funding solution to a financial problem? We can help. Our introducer Scheme can open up many more doors allowing you to place your client with the perfect finance package for their needs.