Frequently Asked Questions

The vast majority of facilities that we provide are fixed rate and fixed term. This means that once the facility in place, your repayments will not react to market fluctuations. If you choose to make large repayments as part of the funder’s terms and conditions, you can reduce your repayment but the interest rate will stay the same. Lenders will either allow you to reduce your repayments or reduce the term with the same repayments. Some lenders also allow you to settle in full with no penalty.

Security on any lend can be taken in the form of personal guarantees, debentures, fixed and floating charges and equitable security. However, security requirements do change dependant on facility type, strength of application and funder policy. For example, an unsecured business loan will often require personal guarantees from major shareholders (also known as beneficial owners) with no other security taken. With asset finance in mind, many lenders will rely on the security of the equipment that they are financing only, and will not ask for any further security. If the deal is borderline for the underwriter to accept, or indeed the asset offers little security, lenders will sometimes request personal guarantees as well as the security of the asset.

Generally speaking, the minimum amount that can be financed sits around £5000. There are exceptions to this with some lenders on our panel reducing minimum lend amounts to as little as £1000.

The panel of lenders that we operate with will consider high value deals. There is no amount restriction in place for the higher end values.

Asset finance can be a useful tool to help your business grow. For many businesses the purchase of assets such as vehicles, machinery and equipment can incur large capital outlay. Asset Finance allows these spends to be spread over a term suitable for your business with monthly, quarterly or annual payments. Often this is a cheaper alternative to a business loan; this is because the lender has security in the asset.

There are several benefits to using a finance broker. A good broker will have full sight of the financial market and be up to date with current policies of each lender. This means that your requirement will be placed with the most appropriate home often saving you time and money. In some instances, a broker may have access to preferential rates and service with a lender due to the number of deals that they propose. There are some lenders that will only accept proposals through finance brokers, these lenders are often specialists in their chosen areas and useful for clients to have as an option. Having access to these lenders enhances the choice of the business allowing the most appropriate deal to be found.

Although we often turn deals around within a few hours, it is good practice to allow sufficient time between approaching a broker and the deadline for the requirement. Facility type and deal structure also affect the turnaround time. As an example, a short-term loan can be proposed, accepted and paid out within a day; but an asset finance facility including multiple pieces of equipment and suppliers could well take several days to complete.

Our lenders can support your business when buying equipment from overseas. There are several options that allow this to take place including payment to suppliers in euros, dollars etc and sale + hire purchase agreements – that allow full reimbursement of spends once kit is delivered and paid for. For full solution information on your specific requirement, please speak to us to find out more.