Asset Finance - case study: Haulage Sector

Background:
Our client, a family business, had been trading for many years when the founder unexpectedly fell ill. During his absence it was uncovered there had been a history of unpaid Vat and PAYE to the extent the business was facing a petition for administration.

Problem and Opportunity
The client required £100k with minimum delay. This would allow preferential creditors to be settled and cashflow to be restored. The family approached their existing financiers however there was a reluctance to provide support.

Solution
Working in partnership with the family, an asset inventory was prepared. From this a presentation was made to a leading finance house resulting in a £250k package being put in place. This consisted of equity release on unencumbered assets, refinance of existing loans and a new credit line for future purchases. Administration was avoided and the business restored to a sound basis.

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