Latest blog posts

More than £2 billion trapped in Britain's manufacturing industries

16-10-2012 11:40 by admin

According to a report by Siemens Financial Services, approximately £2.1 billion is 'frozen' in the manufacturing sector. Much of this money is...

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Asset refinancing - more viable for small businesses

16-08-2012 09:44 by admin

According to Craig McNaughton, the area director for Lloyds TSB Commercial, asset refinancing is becoming an increasingly viable option for small businesses in the UK, and in particular engineering re-finance and printing re-finance. Thanks to the stabilisation of...

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Construction re-finance

Construction Plant Re-finance

How construction plant re-financing works

With a simple, free desktop valuation, construction plant re-finance lenders can calculate the forced-sale or 'stress' value of a business's asset through construction plant re-finance. After figuring out the total value of the assets, they can consider lending to the business, using the construction plant assets as a security for the loan.

Banks, which don't normally consider the working assets of the business, use construction plant re-finance because it has little or no effect on their risk position and any other lending agreements they are currently involved in.

With construction plant re-finance, banks can also limit any unwanted exposure when funding a business on an 'asset lend' basis, particularly in areas such as overdraft agreements. The interest rate will be determined by the perceived risk, although the rationale for the borrowing and the long term impact of the re-financing is an incentive that should easily outweigh the cost.

Construction plant refinancing - Delivering quick cash for businesses

Construction plant re-finance is a much quicker way to deliver funding than conventional bank loans, which can take weeks or months to begin. Typically, funding can be provided in days and the funding periods may last for up to 5 years. However, before this can happen, business owners of Directors will normally be required to provide an (unsupported) guarantee.

Before embarking on an construction plant re-finance solution, business owners may prefer to seek support from their current financial partners, such as their local bank Relationship Manager. These partners may, however, be less willing or unable to support owners of a business already self-funding its undeveloped asset wealth.

To understand how much capital you could raise from your own business assets contact us today.

Enquire today

We can deliver a free desktop valuation of your tangible business assets which may determine how much cash you can raise for your business.

All we will require is a list of your business assets including:

Miles/hours worked
Current estimated value

For a free initial consultation please send us your details and we will contact you for a chat.