Cabot Asset Finance, a well established finance broker and long standing introducer to Close Brothers Business Finance had a client in the packaging industry that was looking to invest in a new conveyor system for their large factory premises.
This new system would be integrated into the current production line and would be crucial to the business in improving time and efficiencies. Cabot Asset Finance was aware that whilst this was a reasonable sized investment for the business, the asset itself, had little value for security purposes and that Close Brothers could structure a deal tailored to the client’s needs by incorporating one of their existing assets.
A deal was structured using one of the existing machines owned by the business with a Sale and HP back product, raising additional security of £100,000. Combined with a supplier invoice for the new equipment and a small cash deposit from the customer, a £130,000 deal was finalised. With the additional security, Close Brothers was able to consider a funding term that was suitable for the client and their cash flow.
The customer was delighted with the solution which enabled them to greatly improve their systems. Cabot Asset Finance is looking to transact further business with the client and continue to be a valued introducer to Close Brothers.