A Guide to Asset Finance

  • Products Offered

    • Hire Purchase
    • Leasing
    • Refinance (Sale and HP back / Sale and Lease back)
    • ALL Non-Regulated

    Max/Min Deal Size

    Minimum £5,000
    Maximum per Asset £500,000
    Maximum per Client £1,000,000

    Max/Min Term

    Minimum Term 12 months
    Maximum Term 60 months

    We will consider a longer term should the specific case and covenant substantiate support
    and consideration.

    Assets Considered

    ‘Hard’ Assets – with residual value, examples include: Agriculture, Buses / coaches, Cars, Catering Equipment (dependent on asset), Construction, Engineering, Heavy Commercial Vehicles, Labelling machinery, Light Commercial Vehicles, Manufacturing machinery, Packing / packaging machinery, Plastics / injection moulding, Textile machinery, Trailers, Waste processing / recycling equipment, Woodworking, Yellow Plant.

    Standard Deposit Requirements

    Minimum Deposit: 10% of the net price
    Standard HP deal: 10% of the net price plus an equivalent of the whole of the VAT.
    Refinance: The equivalent of the whole of the VAT. (subject to a lend at a percentage of the valuation of the equipment)

    Can be reviewed dependent on the covenant, asset, payment profile and term of the agreement. UBC lends considered to assist, if and where appropriate.

  • Type of Customer

    • Limited Companies.
    • Larger Partnerships (4 or more partners / corporate partners).
    • Smaller partnerships for larger ‘Business Use’ facilities.
    • Sole traders for larger ‘Business Use’ facilities.
    • NON – REGULATED AGREEMENTS ONLY.

    Non-Regulated or Regulated?

    Consumer Regulated applies to:

    • Private individuals
    • Sole Traders
    • Partnerships with fewer than 4 partners

    Unless the asset(s) are predominantly for business use and the facility is over £25,000 or a ‘High Net Worth’ exemption can be applied.

    The majority of other customers, e.g. Limited Companies, Larger Partnerships, etc, will be NON – REGULATED.

    Location of Customer

    • England
    • Wales
    • Scotland (not refinance)

    Information Requirements

    Proposal Form, to include:

    • Source of Business
    • Rationale
    • Audited Accounts (if applicable)
    • Management Accounts
    • Last 3 months Bank Statements
    • Directors details (personal asset statements on deals £75k+)
    • ‘Consent to search’ authority obtained

    Guarantees

    In most instances, personal guarantees from the principals of the business will be required.

    We will consider waiving this requirement dependent on the covenant.

    Our strong preference is to see homeowner guarantors, although this can be reviewed on a case by case basis.

    Turnaround Times:

    Our underwriters aim to provide a decision within the following parameters, subject to them receiving a ‘full’ information base:

    • Facility up to £50k: 4 working hours
    • Over £50k to £200k: 24 working hours
    • Over £200k: To be agreed at submission
  • Documentation

    • Produced in-house
    • E-mail delivery, as required
    • Pay-out against originals
  • Invoice Requirements

    Addressed to Synergy Exchange, to include:

    • Customer name
    • Delivery address
    • Full Description of Asset
    • New or Used?
    • Year of Manufacture
    • Serial No &/or Registration No.
    • Net Cost
    • VAT
    • Any deposit details / received
    • Balance Due
    • Bank details on invoice or company letterhead

    Deposit

    Paid into UAF account and/or paid to supplier and shown ‘as paid’ on invoice

    Pay Out

    Supplier payments:

    • Same day as receipt of complete documentation
    • Faster Payment or CHAPS

    Commissions

    On a deal by deal basis, reflecting the net return to Synergy Exchange.

    Paid by BACS within 7 days of drawdown of the facility.

    Standard Fees

    • Admin Fee (with first payment): £200.00
    • Option to Purchase fee (with final payment): £200.00 plus VAT
    • Secondary Rentals on Lease As standard, will be the equivalent of 1 primary rental,due annually

    The figures can be increased or decreased, dependent on covenant and/or deal

  • Other Matters

    • Additional security may be required
    • We will consider ‘older’ assets on a case by case basis.
    • We will consider sub-let/sub-hire arrangements – subject to review and approval of the client’s hire documentation.
    • Formal / professional valuations may be required (cost borne by client)
    • Asset inspections may be required.
    • Landlord Waiver may be required.
    • Debenture holders waiver may be required on refinances.
    • Balloons considered with suitable covenant and asset.
    • Operators licence details to be supplied with HGV/PSV deals
    • Clients to pay by Direct Debit
    • Start-ups / phoenixes / pre-packs considered with full information base

    Synergy Exchange is a responsible lender in the UK SME market place and will not engage in any transaction that has the potential to damage the reputation of the Company or the wider Synergy Exchange.

    The Company is a member of NACFB and, as such, is committed to abide by its Code of Conduct.

    All proposals will be submitted in the first instance to your Regional Director, who will co-ordinate the submission of the application to the underwriting team.

    An underwrite is only valid for 60 days and must be re-under written beyond this timescale.

    The Company reserves the right to overturn any underwriting decision if deemed necessary, prior to pay out.

    The Underwriting process will include a review of:

    • Advance Requirements
    • Introducer assessment
    • Source of business / client
    • Review of client history / track record
    • Graydon / Experian / Credit Reports
    • Adverse information
    • Industry review
    • Financials (Accounts/Bank statements/Serviceability/Track record with other facilities, etc).
    • Asset appropriateness
    • Management Ability and history
    • Director guarantee support
    • Customer premises / Landlord Waiver availability
    • Rationale of investment / purchase
    • Supplier Assessment
    • Other Synergy Exchange liabilities / facilities
    • Additional security requirements / Debenture

    Examples of the more positive attributes / factors affecting the underwriting stance would include:

    • 3 years+ trading / established
    • Consistent profitable trading / Interest cover 4+
    • TNW £75k+
    • Company records up-to-date at Companies House
    • Accounting information up-to-date
    • Experienced management
    • Good Asset / Supplier / Introducer / Sector
    • 2 years+ positive payment history/track record with Synergy Exchange
    • Clear searches (business and personal)
    • Transparency