Refinance enables the customer to raise immediate cash for their business from equity held in existing plant, machinery and vehicles even if the equipment is already subject to finance arrangements.
In recent years there has been a surge in refinance enquiries with customers able to utilise the product to reduce overdraft or invoice finance obligations and move away from rigid bank lending to simple term loan finance where payments and charges are completely transparent.
In most instances, a simple ‘Sale and Hire Purchase Back’ mechanism is used to incept a refinance agreement with the perceived value of the asset used as security. This potentially protects the customer from having to give additional support.
Refinance can assist in other areas:
- Funding tooling projects or soft costs otherwise considered unsecured lending.
- Raising cash for MBO’s.
- Pay off VAT / PAYE or Corporation Tax liabilities.
- Clear over drafts or consolidate existing debt to reduce monthly outgoings.