Asset Finance and Refinance Case Studies

Refinance to Raise Cash

Amount: £75,000

Historically, this company was supplied with free-issue stock. When their supplier began to struggle, this facility was withdrawn without warning. To continue trading, our client needed a cash injection of £75,000 to purchase the stock, and they needed it quickly!

They called us, and after careful consideration of all the business assets (property, machinery and ledger), we advised that the speediest and most effective way of raising the money was to refinance the machines.

We arranged a Sale and Leaseback facility for 100% of the machinery value. and our client received the money nine days after the initial enquiry.

Refinance to Support a MBO

Amount: £3,500,000

Following a request from one shareholder to sell his shares, our client initiated an MBO. In the first stage, they approached their bank who were unable to provide the necessary finance. Our client contacted us following a recommendation from their advisors.

The total consideration of £3,500,00 was raised as a combination of ledger, property and asset finance. The asset finance amounted to £1.5million and whilst our client had received an offer from an alterative provider, we were able to provide a more competitive facility saving our client over £200,000 of interest charges.

Extra Credit Lines for Major Hirer

Amount: £2,000,000

Our client is a major hirer of commercial vehicles. They are an intensive user of asset finance with typically £12million of vehicles being financed each year.

They have many existing credit lines, but contacted us when their current funders could not increase their advances in line with our client's planned growth.

By researching the marketplace, we found three additional funders and secured an additional £2million of credit lines for our client.

Tailored Facility for New Company

Amount: £1,107,000

Our client needed £1,107,000 of funding facilities to buy a large number of low value items. These items were to be installed off-site at many different locations.

Despite being part of a major PLC, they were unable to secure the funding.

They contacted us, and we quickly identified that the two main problems were the goods location and the type of asset.

By helping our client draft a 'third party agreement' to be completed for each installation, spreading the finance across three separate funders, and by making the funders relax standard contract terms, we were able to arrange the facilities.

Finance for New Start Company

Amount: £93,000

Our client was a newly established company that had developed and patented a new product. Over £500,000 had been spent on development resulting in an insolvent balance sheet. Our client needed £93,000 to acquire a moulding machine so they could begin production.

We helped draft the business plan, adjust the capital structure and obtained order confirmations from the potential customers. These factors, along with support from the directors, enabled us to arrange the finance.

Company with Weak Financials

Amount: £154,000

Our client is a UK subsidiary of a foreign parent company. Typically, all the profits are 'hived-up' to the parent to avoid UK taxation. In addition to this, our client's working capital was provided through loans from the parent resulting in little or no net worth to the business.

As the parent company would not offer guarantees, our client struggled to obtain funding in its own right.

They contacted us, and to date, we have arranged over £150,000 of finance for cars and IT for our client.

We were able to do this, because we took the time to fully understand the trading practices of our clients and were therefore able to present it to our funders in a more acceptable format.

Adverse Credit Application

Amount: £44,000

Our client had traded successfully for a number of years, but recently had to put his company into administration after building up VAT/PAYE arrears and a few CCJ's.

They contacted us to secure funding in a newly established company under common directorship.

We took the time to fully understand why the old company had experienced problems. We satisfied ourselves that this was not due to management errors, but was an unforeseen set of circumstances that could not have been predicted.

We demonstrated this to our funders, and because our client was honouring his existing debts, we were able to provide the new funding.

Funding for a Nightclub

Amount: £66,000

Our client wanted to make the most of an opportunity to acquire an under-performing nightclub.

Because of the nature of the industry, the historic losses, and the types of assets involved, our client was unable to secure the finance from traditional sources.

We were prepared to spend the time to fully understand the proposal. We established why the nightclub had struggled, the levels of investment being made, and the likely returns based on local demographics. This enabled us to present a more complete proposal for funding.

We secured the finance, and after an initial investment of ?180,000 by our client, they are currently returning 45% per annum and have a potential buyer at £550,000

To Summarise...

Our knowledge of the commercial asset finance sector means that we endeavour to find the most appropriate funder for every requirement, whatever the financial status of the applicant. Our knowledge enables us to regularly arrange asset finance even in unusual circumstances, where perhaps the applicant has been refused elsewhere.

Contact Sterling Capital Reserve regarding you Commercial Finance requirements