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What is Asset Finance Bridging?

Asset Finance Bridging is really very simple. Very often, when a business is buying a large new piece of plant or machinery, they will use a Hire Purchase or Leasing company to finance the new kit. This allows the purchasing business to pay for the asset over a long period of time, rather than up front. The issue can be that the manufacturer typically needs to be paid up front, or will at least require a deposit, before shipping and commissioning the new plant. The HP or Leasing Company needs the plant to be on site, and fully commissioned, before they can provide finance. Asset Finance Bridging solves this problem. Creative Trade Finance will bridge the gap between the two parties.

How Does Asset Finance Bridging Work?

It’s really very simple. Once you have sourced the plant/machinery you require, and have set up an agreement in principal with your HP/Leasing Company, you can then call on the services of Creative Trade Finance. We will purchase the machinery outright, in our name, and arrange for it to be shipped and fully commissioned on your premises. We will then arrange for your HP/Leasing Company to buy the asset off us, allowing them to fund your purchase as per your original agreement. Creative Trade Finance will then charge a fee to you, based on what is being bought, where it is manufactured/shipped from, and how long the finance will be outstanding for. Indicative costs can be quickly given following a short phone conversation with you or your broker. Quite simply, that is all there is to bridging finance.

Why do Companies use Asset Backed Finance?

As the economy continues to recover, and companies grow more confident, many are finding the equipment they have been using is no longer up to the job. A large number of businesses have been making do with the equipment they have, which can often have a detrimental effect on a business. Due to long term uncertainties, businesses have been unwilling or simply unable to take on the cost of acquiring new plant and machinery. Now there is more work and greater opportunities, asset based finance is often required to help businesses take the next step. Many of the businesses we talk to struggle to obtain a loan which they would previously have used to buy new equipment. This barrier to growth is removed because the financier can use the asset as security. Hence the term, Asset Backed Finance.

Talk to Creative Trade Finance today!

Bridging Finance and Asset Finance Bridging can actually be used for numerous reasons, not just the purchase of new plant. Whatever your requirements are, pick up the phone and speak to us today. We will happily discuss your requirements and work with you to find the best solution to your individual needs. Creative Capital and Creative Trade Finance don’t work on a one size fits all basis. We understand SMEs need to be flexible, and need a flexible partner to work alongside them. Our moto is Business Finance – Fast and Simple, and that is how we will work with you. Indicative costs and an explanation of how we can work with you can normally be given over the phone. Once we have all the information required, we will then make a final decision and have paperwork sent to you quickly and efficiently. No credit committee, no ivory towers – just simple, plain talking finance.  Contact us today, and we can help you achieve your business goals together.



Do I need to have a Hire Purchase or Lease agreement in place before I use your facility?

In order to provide the finance required to purchase the new plant or machinery for you, we must have sight of a contract between you and the end financier. This is essential to ensure we have an exit route, and also to make sure the fees being charged to you won’t be prohibitive.

What is the maximum amount of time I can borrow the money for?

As always, we will try and remain as flexible as we can, and we will consider each individual deal on its own merits. The general rule of thumb is that we will fund a transaction up to 90 days, although the preference would be for up to 60 days.

What security is required?

We will require an unsupported personal guarantee from all directors/shareholders, as well as a debenture against your company. If you are already working with another funder e.g. an invoice finance provider, then we will be happy to liaise with them to agree appropriate priorities between the respective debentures.

How much can I borrow?

We will be happy to consider Asset Bridge Finance to help with purchases ranging between £25,000 and £200,000 per transaction – we will have to restrict our finance to the amount of the independent valuation we would request for any given asset.

What documents do I need to provide before you can provide Asset Bridging Finance?

We will need to see evidence that the hire purchase or lease finance is in place together with an invoice from the supplier in our name – we would also seek an independent valuation on the asset being purchased and would want an undertaking from the hire purchase or lease provider to send their finance proceeds directly to us once the finance is drawn.

What types of assets can be financed?

We can consider providing finance against any type of plant or machinery, as long as it is being financed by a hire purchase or leasing company once it is on site.

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01244 561343

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