Financing large projects
It is often worth considering putting in place a leasing facility for more than you actually need to give you the flexibility to purchase additional assets quickly as and when you need them. Sometimes the client may not be aware that they have the scope to do this.
Bluestone recently acted for a client looking to move into a building with no internal fittings and furnishings on a newly built business park. The client wanted to finance as much of the refit project as they could and they estimated that the cost of the furniture and fittings would be in the region of £500,000. The client had already ordered the furniture and need the funding quickly to pay deposits of 30% to the supplier.
The client's accounts were not strong enough to support a funding of this size. Moreover, there was a need to finance the extra IT and telecommunications required for the new building.
Bluestone identified a company in the group that was strong enough to support the financing of the furniture, IT and telecoms with some headroom to allow for future asset expenditure. In order to bring monthly expenditure in line with budget while allowing headroom, £750,000 was placed for the client repayable over a 7 year period.
The funding was put in place very quickly, allowing the client to pay the deposits on time and then draw down on the facility as the refit project progressed, secure in the knowledge that they had sufficient financing in place to fund the inevitable cost overruns.
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To find out how Bluestone Leasing can help with your asset finance & business leasing needs, simply call 01924 248800 or complete our contact form.