We’ve all seen in the news [this week] that Mickey Mouse once again has his tail between his legs. Despite hailing more than 275m visitors to date, Disneyland Paris has recorded a loss almost every year since it swung open its iron gates in 1992 and has been forced to seek a £785m emergency bailout.
As the Magic Kingdom struggles under a mountain of debt, we thought what better time to discuss the role of asset finance in helping tackle business arrears.
Whilst asset-based lending is more commonly known in aiding the purchase of costly equipment, recent figures from the ABFA (Asset Based Finance Association) showed that 40 per cent of UK businesses with debts had utilised this form of commercial funding in the past 12 months.
The asset finance market has risen fivefold over the past decade, with companies large and small turning to alternative funding providers to help clear debts and arrears amid a shortage of ‘traditional’ bank loans.
Refinancing agreements help to inject working capital into a business by releasing any value in idle assets. In essence, a business ‘sells’ ownership of said assets in return for a cash sum. During the duration of the agreement, the business would then lease the asset for a fixed repayment to continue its use, with ownership transferring back to them at the end of the term.
Asset finance now acts as a life support to many UK businesses with this lending market imperative to boosting the economic recovery.
See how Praetura can help your business minimise its debts and arrears and call 0333 323 7800.