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We field many calls from clients looking for alternative ways to finance tax debts in the business. Although most tax debt loans are secured by property where a lender can recover the money they lend. Certainly, finding finance that is not secured by a mortgage can be troublesome. Surely, the reasons for searching for unsecured finance could be:
- No real estate to secure a loan
- Insufficient equity in property
- Wanting the loan to be in the business name as opposed to a director's personal name.
- Short-term nature of required monies.
So, what are the alternative solutions available to people with these needs?
For businesses, there are a number of alternative finance solutions. Such as:
- Unsecured business loans
- Invoice factoring
- Cash flow loans or lines of credit
There is another option called leaseback finance. As such, leaseback finance is essentially an asset loan very similar to a car or truck loan. However, where a business currently owns an asset (or has sufficient equity) that can be used to secure a loan for a number of purposes.
The process involves the lender buying the asset, then leasing the asset back to the business for the same business use.
The benefits of this type of finance are fairly straight forward in that:
- You are able to recover past cash flow used to purchase assets.
- The finance is assigned to the business/company.
- You retain use of the asset without having to sell to recover monies.
Types of assets that can work in this situation are machinery, transport vehicles, or other higher value items.
Loan Saver Network is an expert in bad credit car loans and asset leaseback finance. Call us today on 1300 796 850 for a free assessment and advice on how to solve your business finance issues.