How does asset finance work?
If your business needs to raise capital for expansion, equipment or to ease stresses on cash flow, it can deliver funds via refinancing or freeing up equity in your existing assets, such as equipment or property your company already owns.In broader terms, it also encompasses hire purchase and leasing.
What services does Praetura Asset Finance offer?
We work with brokers, accountants, auditors and insolvency practitioners, as well as companies themselves, to deliver affordable finance via hire purchase, finance leasing and asset-based finance agreements. Our expertise adds value to professionals who are seeking to streamline a company’s operations, organise expansions or management buy-ins and buy-outs, and mitigate short-term cash flow issues.
Can Praetura finance a management buy-out or buy-in?
Yes, this is one of our specialities. We often work with corporate accountants, solicitors and other professionals to structure finance on existing assets, as part of the overall financial package.
How much asset finance can Praetura offer?
Normally the minimum amount Praetura will finance is £7,500 with an upper limit of £2,000,000, net of VAT. Occasionally, individual cases may require more flexibility, and we will determine these on a case-by-case basis.
What kinds of equipment can be financed?
Asset finance is very flexible and can help businesses across many sectors, so the types of equipment are wide and varied. For example, Praetura can help finance commercial vehicles (including London Black Cabs); contractors’ plant (including excavators, dump trucks and crushers), precision engineering and woodworking, and other equipment for a borad range of industries. We can also offer guidance on meeting legal requirements regarding licences and regulation for the use of your purchases.
Which sectors do you offer asset finance to?
Construction and plant, engineering, printing, waste and recycling and transport (cars, vans, lorries, HGVs and trailers), agriculture (tractors and farm equipment).
Does the borrower have to be a limited company?
As well as for limited companies, we also offer asset finance to sole traders, partnerships, PLCs and public bodies.
What is a repayment schedule?
The borrower will make regular payments via direct debit from a business bank account. In most cases payments are monthly. Businesses potentially affected by seasonal fluctuations – such as in the agricultural sector – may qualify for a payment schedule that takes this stress on budgets into consideration.
Are the repayments a fixed amount?
We will draw up a schedule of monthly payments which will be followed throughout the repayment period. The only time payments will change is if the government increases tax or VAT, in which case we are bound to comply with these increases. Otherwise, your payment will not deviate from the schedule.
Is it possible to have equipment from different suppliers on one agreement?
Yes, because we understand that combining assets and suppliers on one agreement allows buyers more choice on quality and price. However, it is dependent on the delivery of all the items being made within a close timeframe, so that we can manage the suppliers’ or manufacturers’ payments.
Can the assets be transferred if the business is sold?
We might be able to assign the agreement to the new owners if they qualify; otherwise the agreement must be settled in full before the title to our assets can be transferred across as part of the sale.
Can the agreement be settled earlier than the minimum term?
Yes, we can arrange this. If a client wants to pay off the finance earlier than originally agreed, a settlement figure can be provided; in most cases this will include an interest rebate.
How does Praetura add value to the work of other financial professionals?
Our expertise is at your disposal. We can open up opportunities and options that might not have been explored as viable and work alongside solicitors, auditors and insolvency practitioners to deliver satisfactory solutions which enable businesses to move forward.