Pressure on the cash reserves of SMEs up and down the country is increasing on a daily basis. As we move into what is being heralded as ‘Phase Two’ of the Coronavirus Crisis, with some lockdown measures being eased, there is arguably going to be a greater need for businesses to look at different ways to ensure their company has the available case; both to keep the wheels turning and adapt to what is going to be a ‘new kind of normal’ for an indefinite period of time.
Could your company’s assets provide answers?
The number of businesses using asset refinance as a funding tool has increased over recent years. However, there are many company owners and directors who aren’t aware that their firm’s vehicles and equipment could be the key to solving or reducing cash flow worries (without restricting the ability to use those assets).
You don’t have to see an asset to be able to make use of the value of it, in terms of cold hard cash. Asset refinance is a way that you can unlock the equity that’s tied up in those assets and make use of it when your business needs it most.
If those assets are currently being financed by a lease or hire purchase agreement, refinance could be a way to consolidate those debts and, in many cases, you will be able to reduce your monthly payments by doing so too. In these cases, asset refinance can provide both an immediate and an ongoing solution: by the injection of working capital straight away and by a reduction in the company’s outgoings each month.
The ‘3 Rs’ of Refinance
A simple way to find out whether asset refinance is an option that could help your business, is to consider what we’ve termed the ‘3 Rs’ of Refinance: review, release, reduce:
- Review
What equipment, machinery and vehicles does your company use and operate?
What is their worth?
How much equity are they holding?
Which assets are being financed and which are unencumbered? - Release
If there is sufficient equity currently held in your company’s ‘hard assets’ (cars, vans, trucks, machinery, construction or agricultural equipment etc.) with asset refinance you can unlock that value and get the cash deposited in your bank account. In many cases this can all be arranged within a matter of days.The deal can be structured to suit the needs of your specific situation with manageable monthly payments and seasonal adjustments possible.As an added bonus, at Praetura Asset Finance we are currently offering a 50% reduction in payments for the first three months on all refinance agreements, through the Refinance Relief funding initiatives we announced back in March*. - Reduce
If you have assets currently being financed by a lease or hire purchase agreement, these can be refinanced too. By consolidating one, two or multiple agreements, monthly payments can be reduced (often by significant amounts) on top of the boost of a lump sum injection of working capital.The 50% reduction in payments for the first three months (with Praetura Asset Finance) offer would also be applicable.
Speak to an expert to find out more
Praetura Asset Finance are proud to work in partnership with a plethora of asset finance brokers, commercial finance brokers and business finance advisers throughout the UK.
If you don’t have an asset finance broker, Praetura Asset Finance are a patron of the National Association of Commercial Finance Brokers (NACFB), who are an accredited trade body representing over 1,900 commercial finance brokers in England, Wales, Scotland and Northern Ireland. A list of member brokers can be found on their website.
If you want to speak directly to a consultant lender who specialise in asset refinance, you are more than welcome to get in touch with the team at Praetura Asset Finance by calling 0333 323 7830 or emailing enquiries@praeturaaf.com.
*Terms and conditions apply, please get in touch with our sales team to find out more. If the 50% three month reduction in payments for the first three months offer is taken, subsequent monthly payments from month four will increase (on a pro-rata basis, unless agreed otherwise) to ensure the full amounts are paid over the full term of the agreement. This offer is currently applicable to all refinance arrangements going live with Praetura Asset Finance from 17 March – 30 June 2020.
