Engineering Business Asset Finance

Background

Large engineering business that had a very lumpy cashflow due to all of their finance agreements being over varying terms plus they needed additional working capital to bring in new tooling, refurbish existing machines and make improvements to their site.

Challenges

• The customer had a huge concentration to the car industry
• One part of their business was profitable whereas one was loss making
• The equipment was mostly all on finance on varying terms
• Some equipment was extremely old but still held huge value

Solutions

£1100k RE-FINANCE – 36m

We re-financed the customers agreements, the original terms varied from 24m to 60m and had very lumpy cashflow requirements with some of their biggest assets on the shortest terms – They also had a number of agreements on quarterly payments that happened in the same months as VAT quarters and were a massive cash strain. We moved all the payments into one agreement for the same average monthly amount as they were paying but got them an increased amount of funding overall meaning they had a smoother monthly outgoing and additional cash to pay for new tooling and refurbish some older machines to take on new contracts.