How GSM can help release cash flow utilising assets you own.
As banks tighten their lending criteria, many businesses struggle to secure traditional loans after the lengthy application process. When your business needs funding you may want to consider refinancing your assets. Asset refinance is a tool to release equity from unencumbered assets, both hard and soft, and re-inject cash flow to keep your business on course.
Benefits of asset refinance:
With asset refinance there is often flexibility over the contract terms and repayment structure, the repayments are usually fixed, which helps long-term budgeting. An easier way to explain refinance is to transfer ownership to the new lender while you continue using the asset, effectively leasing it to them with monthly payments. This is why asset refinance is also known as a sale and leaseback agreement. Asset refinance agreements are usually provided on a finance lease or lease/hire purchase agreement.
A hard asset is commonly an item that retains its value by virtue of being transferrable to another user. For this reason, they provide the strongest security for lenders. Example of hard assets:
A soft asset's value is usually lower and tends not to provide as much security as a hard asset, as it is an asset that depreciates in value once it is installed. Example of soft assets :
Gym & Leisure Equipment
Audio Visual Equipment
Computer hardware and software
Air conditioning systems
Refinancing allows you to release cash that’s tied up in your existing assets and can help boost your cash flow. It can be provided on both Lease Financing and Hire Purchase agreements – even if you have money still left to pay. For the repayment, as with all loans and agreements, a contract will be put in place dependent on the value of the loan. The contract put in place will show you the regularity of the fixed payment over the period which was agreed upon and also the value. The fixed payments will cover the repayment of the loan and any interest accrued.
Am I Eligible for Asset Refinance?
To be eligible for asset refinance we always need to see the balance sheet of the business. If you have a business that can meet its financial obligations, then yes. Whether you are a sole trader, a partnership, a limited company, or a start-up - there are many kinds of asset finance available with a lender to suit every business need. The sum released is agreed upon by the lender, based on the asset’s residual market value. A snapshot of the businesses’ financials is all we need to get started. Typically this means:
Last full set of filed accounts Six months of management accounts and bank statements.
With over thirty lenders and specialist leasing companies on our broker panel, we can bring our experience to bear in matching you to the funder most suited to your needs. This way, we can always ensure that you get the best deal. For over twenty-five years, GSM Finance has helped businesses across a range of sectors to fulfil their growth aims with our individually tailored asset finance packages. Our specialised brokers will take the hassle out of your hands; finding you cost-efficient options that keep the money in your pocket, without compromising quality.
Enquire today for more information on Asset Refinance
020 8874 9994
Alternatively, please fill out a contact form and a member of our team will get back to you