Hire Purchase agreement supporting a well established business
Working across a range of sectors, Anglo Scottish Asset Finance Ltd is an independent finance provider offering a variety of financial services including asset finance. They offer financial support to businesses whether they are looking to fund expansion, manage cash flow, acquire assets or even organise some personal finance.
Trading locally for over 20 years, Anglo’s customer is a well established vehicle logistics company specialising in car transportation and fleet delivery services. Anglo has worked with the customer many times over the years, developing a long standing relationship. Paul Sargent, Director at Anglo Scottish Asset Finance, introduced the client to Mark Gilman, Senior Broker Development Management at Close Brothers Business Finance.
Releasing capital from existing assets
Following a historic aggressive repayment policy from their existing lender, the customer was looking to reduce their monthly outgoings and ease the business cash flow. They have built up an enviable reputation and have been operating for a number of successful years, but last year the company made a small loss due to uncertainty in the market. Due to the short term previously taken on agreements, the customer had good equity held in the fleet of vehicles but wanted to reduce its monthly expenditure by refinancing over a longer term. Following a tough year, the new agreement would allow the customer to release some cash and remove some of the debt within the business, easing their financial pressure.
Mark Gilman, Close Brothers Business finance recommended a £2.8m refinance deal via a Sale and HP Back product which has resulted in savings of around £40,000 per month for the customer.
Commenting on the deal, Paul Sargent, Anglo Scottish Asset Finance said: “The money released from the existing assets has aided our client to consolidate current debts, reduce outgoings and boost capital. They can now continue to grow and by working together with Mark and the Close Brothers team, we will hopefully be able to provide further funding for vehicles for our client in the future.”