Asset-based finance

Tony

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Mar 10, 2004, 7:18:45 PM3/10/04

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Does anyone know of a UK source of purely asset-based finance?

Virtually all the US banks seem willing to lend on anything from vehicles to
plant and machinery, but UK banks seem to just sniff and say "we're not
pawnbrokers".

I'm looking for short-term (3-6 months) finance on a commercial asset which
is currently in safe storage and has a forced sale (auction value) of at
least £250K, but no-one in this country seems to want to know. The best deal
I have been able to find so far is 1/2 of auctioneer's valuation at 2.5%
interest per month! Does anyone know where I might be able to find a better
deal?

TonyC.

Richard Faulkner

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Mar 10, 2004, 7:58:41 PM3/10/04

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In message <404fb...@mk-nntp-2.news.uk.tiscali.com>, Tony
<ton...@tiscali.co.uk> writes

What is it? I have a friend in engineering finance, and he has
colleagues in different sectors.

--
Richard Faulkner
Faulkner & Faulkner
Tel: 0161 881 6087 Fax: 0161 861 7636 web: www.estate.demon.co.uk

Steve

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Mar 10, 2004, 9:41:03 PM3/10/04

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Yes I see what you are claiming, but what you WANT is to PAWN something.

Plenty of companies do asset-finance, eg Surry Asset Finance, but they
lend to a purchaser on the value of a machine being purchased AND the fact
it will generate some income for the borrower - so they have the double
safety of resale value and income to cover the debt.

You are offering a 'redundant' 'idle' 'depreciating' 'ageing'
machine as a security against a loan.
What proof is there that within the loan timescale than a new improved and
cheaper version won't come onto the market, completely devalueing your
'asset'.

You might have half a chance with a machine broker in the industry the
machine is for, who will lend you the money on a 'remortgage', allowing
them to collect the machine if you do not repay.

Marshall Rice

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Mar 11, 2004, 7:02:42 AM3/11/04

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In article <404fb...@mk-nntp-2.news.uk.tiscali.com>, Tony
<ton...@tiscali.co.uk> writes

>Does anyone know of a UK source of purely asset-based finance?
>
>Virtually all the US banks seem willing to lend on anything from vehicles to
>plant and machinery, but UK banks seem to just sniff and say "we're not
>pawnbrokers".

This is one of the reasons why the US economy is so vibrant compared
with that of the UK. Massive competition (the US has literally hundreds
of banks) and an entrepreneurial spirit mean that US banks will lend on
almost anything, or against almost any idea, though the risk (as they
see it) will be reflected in the amount advanced and the interest rate
charged.

Of course, it's also one of the reasons why US banks go bust from time
to time and why one regularly sees "bank auctions" of everything from
cars to livestock.

There's an old saying that UK banks won't lend money unless you can show
that you don't need it. Sad, but true.

>I'm looking for short-term (3-6 months) finance on a commercial asset which
>is currently in safe storage and has a forced sale (auction value) of at
>least £250K, but no-one in this country seems to want to know. The best deal
>I have been able to find so far is 1/2 of auctioneer's valuation at 2.5%
>interest per month! Does anyone know where I might be able to find a better
>deal?

Unless you can find a private investor, probably best forget it.
--
Marshall Rice

(Put the bin out to email me)

Paul C. Dickie

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Mar 14, 2004, 7:46:34 PM3/14/04

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In article <0IUEPZAi...@msrice.demon.co.uk>, Marshall Rice
<Mars...@marshallricebin.co.uk> writes

>There's an old saying that UK banks won't lend money unless you can show
>that you don't need it. Sad, but true.

There's another: "Now, Barrabas was a banker..."

--
< Paul >