Hire Purchase For Industrial Racking

Thanks to Matthew Lister from CCBS Group for working with us on this deal.

This long-standing entrepreneurial client of Matt Lister recently demerged a key brand from one of his successful businesses. This left behind an impaired balance sheet as he restructured.

The client had secured new contracts for the storage solutions arm of his business, but to fulfil these he required industrial racking costing £200,000 to fit out his new warehouse premises.

£200,000 Hire Purchase over a 3 year term. The client wanted Hire Purchase, to pay the finance off, and keep the asset for future use.

Matt Lister said: “I have a good relationship with Asset Advantage. I know how they work and where they fit. Asset Advantage had previously done a deal for £15k for this customer, this meant they could see the strong payment history. However, I had to find out if they had the appetite to support the business more.

Industrial Racking can be a trickier asset class, and not every lender has the appetite to fund it, but this is in the sweet spot for Asset Advantage.

We were also pleased to have a fast turnaround on this deal. Myself and my client arranged one afternoon to do all the documentation together, with the mindset of get it right first time. This enabled us to get the payout within one working week of arranging the documents to be raised.”

Insight from Philip Knight Credit & Risk Director: "Deals for returning customers are so much easier to underwrite as we already understand their business model and the new finance requirement can be linked to that initial contact. Having an unblemished repayment record helps too!"