Monday 22 September 2008

Business Leasing - A 100% Commercial Loan

When searching for Commercial Loans to raise capital for your business the closest you can get to a 100% finance option is Business Leasing! Typically one monthly rental payment suffices as a full deposit to purchase that new asset such as equipment, plant or machinery. The cost of installation, maintenance and warranty could be added to the loan too!

If your company needs new equipment then business leasing could be beneficial. Some of the circumstances where leasing could be the logical choice are:-

  • You don't have the cash to buy your new equipment but need that asset today.

  • You do have the cash, but reducing your working capital may compromise your business.

  • You don't need new plant or machinery but you do have exisiting assets that have a good residual value against which a sale and business leaseback finance facility could be utilised.

  • Because you can fully offset monthly payments against tax, it makes commercial sense to lease for your business.

  • Your business assets have a short useful life span and need to be replaced regularly.

For more information we recommend further reading at our specialist Leasing Finance pages.

Wednesday 10 September 2008

Can a Bridging Loan Really Complete in Less than 24 Hours?

Most bridging lenders emphasise their speed of service when advertising short term loans. Providing funds within 24-48 hours from application to completion shows the flexibility of non-status bridging loan products and the providers. Can a property deal really be financed in such a short time-scale? Well, the answer is yes, but I wouldn't bank on it!

To achieve such a fast loan completion much of the background work needs to be already available, such as a property valuation that is acceptable to the potential bridging lender with most of the necessary legal work ready and waiting at your solicitors, i.e. search, title deeds etc. Representatives of both the lender and borrowers need to be in a position to move quickly. Even when everything is available things can still go wrong, for example, an unexpected question arises from the documentation provided.

Our simple recommendation is not to get into the position of needing a bridging loan in such a short timescale, even where a more relaxed 5-10 day timeframe is available, the unexpected can cause delays. Where a customer needs to raise cash and a high speed bridging finance solution is the correct loan option then the borrower should minimise the risk of delay by keeping in control of what is in their own domain i.e. own solicitors and providing all requested information at the start of the process as delay here can extend time to completion resulting in a missed deadline.

If you need finance quickly then a good bridging loan broker should be able to help reduce the potential for delays.