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Obtain as much information as possible, i.e. make, model, age, condition, any extras and original cost.
What are the settlement figures and are they on Hire Purchase or Lease (this makes a difference to the VAT position and settlement amounts/procedures).
A factoring/Invoice Discounter for example will have a fixed charge on book debts and floating charges on other assets which will include plant and equipment.
Where relevant a waiver will be required from Debenture Holders.
Landlords Waivers on the equipment are usually required. This ensures the landlord cannot distain on the goods in the event of non-payment of rent and will usually allow the funder a period of grace to sell the equipment from site and obtain the best possible sale price.
If we have full details on the equipment then a desktop valuation can be obtained quickly to see how much the assets are worth on a loan to value basis.
These are not essential but where available (even on a limited basis) can provide a higher loan to value.
Not Personal Guarantees but warranties from the Directors confirming the goods are free from encumbrances.
As can be seen above there can be a lot of issues to be addressed before paying out on a re-financing transaction. Anticipating and addressing the issues is the key to ensuring a smooth drawdown of facilities.
If you looking for business funding, why don't you contact us?
Phone us at 0845 051 4588 or complete the online enquiry form
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