Metal recycling business grows stock using a refinance agreement

The challenge

A main competitor of the business was recently liquidated, leaving a large amount of scrap metal stock which our customer wished to acquire. However, the purchase required a significant capital injection which was not readily available at the time.

A tailored agreement

The business approached Jack Sagar, Area Sales Manager with Close Brothers Asset Finance for a funding solution. Jack proposed using a tailored Sale and HP Back agreement against an existing metal shearing machine.

With Sale and HP Back – a type of refinancing – the customer sells the shearing machine to us and we lend them the money back. They will then pay us back in line with what the machine earns for them and at the end of the agreement, they will own the machine again.

A secure position

The refinance agreement enabled our customer to acquire the scrap metal stock, significantly boosting both their market position and profits. This is just one example of how you can grow your business through the strategic use of an asset refinance agreement.

Jack Sagar commented: “Through the use of a Sale and HP Back agreement we were able to assist our customer in growing both their stock and market position as a leading scrap metal recycling business. Refinance is just one way through which we can help customers purchase the assets they need to grow their business.”

Our customer commented: “Working with Close Brothers Asset Finance on this agreement has been great as always. This refinance agreement was the perfect solution, it provided us with the capital to purchase the scrap metal stock, strengthening our position in the market.”

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