1. Specify why there is a requirement to raise the funds.

2. Identify the assets to be re-financed and obtain as much information as possible, i.e. make, model, age, condition, any extras, original cost.

3. Are the assets subject to finance with any other finance company?

4. If the assets are financed elsewhere what are the settlement figures and are they on Hire Purchase or Lease (this makes a difference to the VAT position and settlement amounts/procedures).

5. Who are the Debenture Holders?
A factoring/Invoice Discounter for example will have a fixed charge on book debts and floating charges on other assets which will include plant and equipment.
Where relevant a waiver will be required from Debenture Holders.

6. Is there a landlord and if so, who is it?
Landlords Waivers on the equipment are usually required. This ensures the landlord cannot distain on the goods in the event of non-payment of rent and will
usually allow the funder a period of grace to sell the equipment from site and obtain the best possible sale price.

7. Obtain a desktop valuation
If we have full details on the equipment then a desktop valuation can be obtained quickly to see how much the assets are worth on a loan to value basis.

8. Are Personal Guarantees available?
These are not essential but where available (even on a limited basis) can provide a higher loan to value.

9. Directors Warranties – What are they?
Not Personal Guarantees but warranties from the Directors confirming the goods are free from encumberencies.

10. Collating the paperwork
As can be seen above there can be a lot of issues to be addressed before paying out on a re-financing transaction. Anticipating and addressing the issues is
the key to ensuring a smooth drawdown of facilities.