Asset Finance

[JamesS]

We need to purchase additional equipment to increase capacity quickly (Within the next month is a must).

Looking at all the finance such as Asset, Loan, business angels and so on.

As we need the equipment quickly it looks like asset finance will be the way forward. I have some quotes from lombard.co.uk.

Would anyone advice against using asset finance?

[Ian J]

In general, asset finance is the easiest way to finance the purchase of assets so just make sure that you have a competitive rate

[inbakumar]

Hi James,

If you have a quote from Lombard then it is good news. Have you actually got the deal underwritten though? i-e is it just an email/letter saying that they will provide funding subject to credit approval etc etc? The reason I'm saying this is that we have clients who have been let down badly by Lombard after giving an indicative quote.

There are a number of reasons why asset finance/business leasing has proven popular. The Common characteristics of all business leasing products are:

- low initial payment
- makes budgeting easier
- preserves working capital

Factors to consider when deciding to lease:

- Overall cost
- The reputation of the lessor
- Tax implications
- Additional securities required e.g. personal guarantees

Asset finance would be far more cheaper than business angel capital. If I were you, I would go with the funding from Lombard.

For further information, visit my company's website.

Regards,

[JamesS]

Hi Joel,

I was passed on to lombard by my Natwest Business Accout Manager. I went into the branch earlier in the week to sign some forms for an overdraft and briefly discussed we're seeking investment.

What I have is a quote form lombard along with the terms.

They ask for 10% + VAT of the total required. 12, 18, 24 and 36 month terms are all available.

£200 facility fee.

£50 extra on final payment.

No charge other than the interest to settle the finance at any time.

Looks like I will go for this, seems generally the best option.

[JamesS]

They've accepted us for finance

Should all be arranged the next coming week.

[inbakumar]

I'm glad that you got the finance from Lombard. As you are aware, Lombard is a fully owned subsidiary of RBS/NatWest and the market leader. I'm sure you would have got a competitive rate too.

Now the immediate funding issues are resolved, what you got to do now is to plan for the future funding requirements. Please don't wait until the next crunch comes. If you need someone to brain-storm the financing strategy then feel free to PM me and I would be happy to do it over a cup of coffee.

Regards,