Asset Financing

Expert guidance on all aspects of business finance from an experienced team in the brokerage and advisory sectors.

Asset Finance is a funding solution enabling a business to purchase new equipment or refinance existing capital assets, such as commercial vehicles and machinery over a specified period.

Utilising asset finance is an ideal way to invest in business growth for businesses of all sizes.

Types of Asset Finance

There are a number of options available briefly sumarised below:

  • Hire Purchase – fixed monthly repayment terms and you own the asset on completion
  • Refinancing – restructure an existing agreement or release capital based on the assets value
  • Sale and HP back – your assets are purchased at an agreed value and financed back to you over a fixed period
  • Finance Lease – enables you to obtain plant and equipment with no ownership issues other than maintenance and insurance with the option to extend the rental period at the end of the primary lease term
  • Operating lease – short term lease in comparison to the useful life of the asset, based on the difference between the original price and the residual value at the end of the agreement

Advantages of Asset Finance

Asset finance is a cost effective alternative to purchasing an asset outright. Generally all equipment is considered with flexible contract periods. It offers a simple and flexible solution to business growth without the requirement to tie up working capital. There may also be associated tax advantages in asset finance. Asset finance is suitable for virtually any type of business regardless of its size.

Financial Issue

  • A precision engineering company which following a tumultuous trading period, the well-established business had seen its net worth eroded and substantial debts built up with HMRC
  • The business needed to raise funds to allow existing finance agreements to be settled and facilitate a pre-pack administration

Fast forward 2 years

  • The business had been trading well, but day-to-day cash flow levels were being hampered by repayments of a bridging loan that had been taken out as a means to keep the business afloat in 2019
  • To enable the business to progress they were looking to raise additional funding to realign the company’s financial position

Past

  • The Lender structured a refinance funding package totalling £400,000. This paid off existing finance with six incumbent funders and raised additional capital to allow the pre-pack administration to go through. Consequently the business was saved and multiple jobs were secured.

Fast forward 2 years

  • The lender was able to raise the capital required by arranging a ‘re-draw’ on their existing refinance facility which released the funds required to repay the bridging loan in full.
  • By extending the term of the refinance agreement this reduced those monthly repayments too. Overall this provided the business with a reduction in their monthly outgoings of over £3,800
  • The deal was approved, the bridging loan had been paid and the new refinance funding facility was in place
  • With the strain on the business’ day-to-day cash flow levels alleviated and a substantial portion of debt cleared, they are now in a much stronger position and to fulfil the potential progression of the business.

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One thing is for sure is that during bad times it’s the people who step in to the room to offer solutions not the ones who step outside that you want long term relationships with. Many jobs in a number of businesses have been preserved due to the unseen efforts of Metis Funding.

Durham Retail Displays Ltd

Metis is a very well run organisation who I would highly recommend. Their communication is first class and they always make time for their clients. Paula is very prompt in correspondence and is always very helpful.

G United LTD

Before our business started working with Metis Funding Solutions (MFS), we were struggling with cash flow caused by clients not paying on time, David and Paula quickly sourced a competitive invoice finance facility in a sector where others had failed before.
David has assisted me in moving forward in the correct direction with my businesses. I would not hesitate to recommend working with MFS, who listen to your business requirements and support you through your chosen route for your business

Willowdale Ltd

Before our business started working with Metis Funding Solutions (MFS), - we were struggling with finding lenders due to our lack of trading history and financial accounts.
Since working with MFS, they have helped me to obtain funding for my properties in a very prompt timeframe..
I highly recommend MFS if you’re wanting to sit down with genuine people who take on board your personal circumstances. Ultimately, I will be using Dave & Paula for all my financing requirements for the foreseeable future and can't speak highly enough of what they have done for me.

Yorkshire Rendering Company

I approached Metis for business advice a month ago.
I explained my business requirements in brief. A face to face meeting was arranged at a time to suit, so that my requirements could be discussed in more detail.
I was met with professionalism, courtesy & a very friendly approach. If you require a solution to your business needs, I would highly recommend speaking to Metis.

Starboard Personnel

We started working with Metis Funding Solutions, who were able to suggest options to us that would help us financially. We were able to obtain a working capital facility for our business at an excellent rate.
I would highly recommend Metis Funding Solutions, if you need help sourcing the best funding solution for your businesses with honest and helpful advice. Both Paula and David who we dealt with are very professional and very knowledgeable.

DJT Services