eCommerce Business Asset Finance

Background

Fast growing eCommerce business looking to scale in a hugely competitive market – The business sought to acquire a new piece of picking and packing equipment that automated the back end of their dispatch line where boxing up multiple items took far longer than it needed to and produced a huge amount of unneeded waste.

Challenges

• The equipment was from a new to the UK supplier
• The funding required stage payments including retention amounts
• The equipment had a huge value shortfall

Solutions

£560K ASSET FINANCE – 84m – 1 RIA (Rentals in Advance) DEPOSIT PLUS VAT

• Reduced deposit to match cashflow
• Longer term to match lifespan and depreciation cycle of asset
• Worked with the funder to understand the supplier and bridge the international payment.

Financially, the business is fantastic but the equipment was very software driven, the supplier was new to the market and were being based in the Netherlands – We worked hard with the funder to get them comfortable with the equipment even though it had a poor valuation, to support us with the stage payments and the low deposit. We got equipment examples from the supplier to show examples in the market of lifespan and durability to make their asset management support our proposal and terms.