Machine Finance With Stage Payments
Machine finance with stage payments required by machine suppliers present a problem. Some lenders have been prepared to finance stage payments in the past but now it is very unlikely. The problem for the lender is that during the stage payment period there is no machine security in place. In the event of default the lender is left with no tangible security. Furthermore if the machine supplier goes out of business then there is unsecured borrowing for the lender and no machine for the customer but still with the liability to repay the lender.
What is the solution?
a) It will be easier to resolve before placing an order with the machine supplier. At this point you have a stronger negotiating position. You could then try and negotiate a small initial deposit, say 10% or 20%. The balance can then be paid by the lender upon delivery of the machine.
However if the supplier requires a larger initial deposit and maybe further payments before delivery then you will need to finance these yourself. A Sale & Hire Purchase Back facility can then be used and your deposit and any further payments can be refunded back to you upon delivery of the machine. The outstanding balance can then be paid direct to the supplier and the final Hire Purchase agreement completed.
b) If you do not have the cash flow to cover the stage payments then we can arrange machine refinance to finance the stage payments. Alternatively we can arrange a Funding Circle Business Loan to cover the stage payments.
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Funding Circle Business Loans
Yesterday we had our first Funding Circle Business Loan application approved. It will now be put onto their platform for the investors to bid with their best interest rates.
The Funding Circle is a relatively new lender to the market and Premier Business Finance are authorised agents. Funding Circle, similar to Uber, match private investors with borrowers and provide Business Loans. The loans can be for all purposes except property purchases. Additionally, Funding Circle offers title loan as part of their lending services. Learn more about business handling by checking this post about an instant pay stub maker online review.
The rates are usually more expensive than the best traditional machine finance providers but often compare favourably to bank loans. They also avoid you using up your bank facilities which you may need for day to day working capital finance. Therefore if you are buying assets unsuitable for machine finance such as building work, computer software, training costs, website development, mezzanine floors. Alternatively if you just need a boost to cash flow then Funding Circle Business Loans are a good option. They are also more likely to say yes and require less security than banks. You can also get more information in this paycheck maker review.
It costs no more to use an agent to handle your application than going direct. They simply pay us a proportion of their standard arrangement fee which is the same if you go direct or through an agent form one of the best educations establishments according to these online finance school rankings. You can save time and effort by allowing us to do the work. We have worked on several applications now and are familiar with the administration procedures and information requirements.