asset finance when no one likes your asset

[dan74uk]

decent profits but held in stock and not cash due to seasonality of business

no cashflow for winter due to having the assets and no cash but no one wants vending machines as a asset .

lloyds wont lend despite being toldby govt to lend (no excuse why)and profit on books into 200k ....150 per cent year on year growth but may have to close now due to cashflow.


any ideas on what i can do to raise cash out of the assets for the next few months

[Williams lester]

Develop a business plan and find an investor?

[VendingRevolution]

Are you trying to raise capital to invest into further vending machines or using the money to live on?

Banks don't like to use vending machines as collaterol and as your business is seasonal it makes your situation even worse. Generally, vending machines, per say, don't fetch much money second hand, it is the site that earns you the money and the banks are aware of this.

You mention that you have made 200k profit, where has it all gone? Making that level of profit and knowing you are in a seasonal business, a provision should have been made for your winter months. To raise money to live on for the winter months is not a good idea and by the sounds of it, your business model does not work and not viable.

What you may have to do is start up another vending business (or altenative business) which is not seasonal which will give you income all year round and invest into a company who will be able to refer you to leasing companies/banks if their business model is proven and the company has A1 credit rating - trying to buy a vending (or any business) business from a non-profitable company will not get you anywhere as they will credit check the company.

As someone has already mentionded, get a business plan together and try and attract an investor. What type of vendors do you run?

Kind regards.

Barbara Fellowes

[macmanusassetfinance]

The two key words in asset finance are Security and Serviceability - satisfy both these requirements and your in business.

Lets look at security. This is defined as the comfort a funder can take in funding any proposal - their risk of loss or return. I assume the security being offered would be the vending machines themselves. If these are assets that are owned outright by the company then you could seek asset refinance.

Unfortunately, as mentioned by another member, vending machines in themselves are not seen to provide sufficient security. If the business fails frankly no funder will want the job of repossessing vending machines and attempting to recover what they can by selling these at auction.

Additional security will almost certainly be required which would probably take the form of second charges against residential property. This provides a funder with far more comfort in lending. We have funders that operate in this sector.

If its short term - say 6 months finance required - we have another funder that you could talk to but they arent cheap - will charge 10% for 6 months borrowing, assuming they agree to do it. Might not need second charge on residential property in that scenario.

The other point is serviceabaility - the ability to repay what you borrow. Whatever the circumstances of the business we need to be able to evidence that you can cover the repayments of any amount borrowed. If this isnt clear or looks unlikely then that will cause a problem that is even more challenging to overcome.

We are happy to offer a free review of any funding requirements without obligation to see if its something we can help with. If interested please email chris.macmanus@mafl.co.uk or call 07885 633897. Hope this helps.