‘Asset Advantage are known for being good with start-ups’
A forward-thinking husband and wife team with a new-concept hospitality venue required asset finance to acquire catering equipment.
Start-ups are the hardest customers to get approval for. They have no trading history to base a decision on.
This deal was a classic Storybook lend, and the broker knew Asset Advantage are commercially minded and would be willing to consider this deal.
In this case, it was the experience of the directors which made the difference. The husband was a very experienced Financial Director, who had previously raised £5million for another venture. His wife also had strong experienced in marketing and hospitality.
Why Finance Lease?
The broker presented both Finance Lease and Hire Purchase options to the customer. The customer chose Finance Lease because Hire Purchase requires the VAT to be paid upfront, whereas with Finance Lease, the VAT is due monthly.
For a start-up business keeping the spare £7k as cashflow would be very valuable.
One of the reasons that the customer was happy to go with Asset Advantage was that we were lending on a 5 year term. They preferred that over the 3 year term which would be available through other lenders.
Why Asset Advantage?
The broker said: ‘Asset Advantage are known for being good with start-ups. Only a few lenders would look at this properly, if it doesn’t tick one box, then the deal can’t proceed. But Asset Advantage have a good approach to start-up companies, and they are good with the story book lend. Asset Advantage have the courage to do things other lenders are scared to do.’
The Result
The customer has now started trading, and have plans for further expansion of their concept around London.
If you are looking for funding for your client, contact Katie Dowse today:
