We are always looking to place our customers with a funder who not only provides the most cost effective solution, but in many cases the most suitable based upon their asset purchase. We face many unusual scenarios and are committed to delivering the right product fit for our customers in an efficient transparent manner. The customer, a new start up, Aerial Surveying company, were looking to acquire a Geo-Konzept drone (non standard asset) from a German supplier costing 35,000 euros. Before speaking to Charles & Dean, the customer’s only option for asset finance was offered to them by a mainstream funder who they had direct contact with: The mainstream funder requested the following in order to arrange the deal:
Directors loans into the new company in order to outright purchase the asset, for the purpose of arranging a sale and HP back product.
a 70% loan to value (LTV) product.
Directors Personal Guarantees (DPG’s) on the agreement.
The bank were also charging a 7% flat rate of interest.
Following initial contact with Charles & Dean, we were able to understand their requirements further and utilise a funder who had a broader appetite for this type of asset. This enabled us to provide a more suitable solution for the customer on multiple levels. Charles & Dean were able to provide a cross company guarantee from underlying companies that the directors were already involved in. This was more suitable for the business as the directors preference was to not have a personal guarantee on the agreement and were happier using the strength of their existing business as security instead. We were able to arrange a euro exchange and have the funds sent to Germany in euros. This was more suitable for the customer as it did not require any directors loans and meant a straightforward hire purchase [HP] agreement was arranged as opposed to a sale and HP back. We were able to arrange a 90% LTV product meaning less of a deposit was required. Again, this was more suitable for the customer as the business was a new start up and cash flow was tight. Charles & Dean were also able to offer a flat rate of 4.65% which when compared to the customer’s initial quote, saved them a significant amount of money in interest payments. With the asset being non standard, the customer was led to believe that their initial deal structure and quote was their only option. We were able to assess the customer’s problem on a personal level and with an in depth understanding of our lenders appetite and place the deal with a funder who provided a more cost effective and suitable solution on multiple levels.