Why Use Cabot Asset Finance

Cabot will arrange funding for all types of moveable equipment and respond quickly and competitively to customer requirements. As the high street finance companies become even more risk averse please remember that we will -

Re-Finance Assets

Finance Non-Standared Equipment

Finance Intangible Equipment

Finance Equipment for New Start up Business's

Call me to discuss your requirements.

Brian Duffy

Director

Why tie up your money in a depreciating asset?

Brian Duffy, managing director of Cabot Asset Finance, suggests that leasing is a practical way of releasing cash from your business.

“If it moves, we can finance it – or even refinance it. That way you can keep your cash moving to benefit your business as a whole,” says Brian Duffy.

“OK, it’s my job to sell finance and I am a Scot, but I really am a passionate believer in keeping your cash in your pocket when it comes to acquiring assets for your business.”

“We all know how difficult it can be to build up a decent cash flow, especially from start-up. I can see no point in committing hard-won cash when there are well-proven alternatives that allow you to have all the benefits of using the assets without seeing the value of your investment dwindle over time.”

“We provide finance for anything from software to a helicopter – and we do have one of those on our books – and typically from £5k to £5 million in value, but we don’t do buildings.”

Some 80 per cent of Cabot’s business comes from leasing with the balance being hire purchase. “That’s because we specialise in B2B. On the high street it’s the other way round,” Brian explained.

Refinancing for cash

One area in which Cabot offers specialist expertise is the refinancing of assets owned by small and medium-sized firms to generate additional cash to fund specific projects.

“Big-name banks and finance houses tend not to offer this type of service. Compared to corporate finance deals the refinancing of equipment through sale and lease-back is seen by them as very unsexy,” Brian commented.

“As a result it has only been available on a very limited basis and it has been left to a small number of lessors such as Cabot to provide this specialist facility.

“We can devise schemes to release cash that in my opinion is better off doing almost anything than sitting there wasting away. Our clients have used it to reduce their overdrafts, provide working capital and support expansion programmes and company acquisitions.”

Getting your cash out

Less obviously perhaps, smaller enterprises have used refinancing as a way overcoming the problem of putting together large cash sums to facilitate a management buy-out or funding the retirement or departure of a director.

“It’s often possible for us to work out a solution to a cash crisis where the conventional bank route is blocked because the company’s accounts are not regarded as A1,” claims Brian.

In the case of one family-owned plant hire and construction business in the West Midlands, Cabot was able to come up with the plan that was key to helping them get back on an even keel.

“They were a successful business but their cashflow was being squeezed and it was a serious threat to their future. We looked at all their assets and proposed a sale-and-Hire Purchase back arrangement,” he explained.

“It generated enough cash to settle what was owed to the bank and to increase the working capital. It was a very uncomplicated answer to an immediate problem and one that was not available from what they saw as the natural source of funds – the bank.

“Our clients were pleased to find that they weren’t paying prime lending rates and the bank was happy to have referred the business to us at it meant they did not lose a customer,” said Brian.