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Block
discounting finance overview
Businesses that rent out equipment and provide corporate
and consumer loan facilities often need additional capital
in order to grow and develop. However, they do not want
to sacrifice their working capital or credit lines.
If you find your business in this position, then we can
help. In conjunction with our finance partners, we are able
to lend you finance based on the rental or loan agreements
you have with your customers. We can arrange for you to
have a new credit line from which you can draw money down
as you need it. You gain access to funds now, enabling you
to budget with confidence and project your cash flow more
accurately.
What
is Block Discounting Finance?
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Block discounting
facilities are a convenient method of financing a traders hire
purchase, credit sale or rental agreements. The finance company
will acquire the traders rights under the agreements at a discounted
valuation and the gross value will be repayable by equal monthly
installments. The valuation of discounted agreements will be subject
to negotiation.
The main benefits of block discounting finance are:
 Ownership of the goods
is retained.
The end-user of the
goods remains unaware of the transaction.
Finance is secured
on the value of the rental agreements.
Cash flow is improved,
as fixed repayments are matched to the rental income stream.
Hedging of the finance
company's interest rate exposure.
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Block
discounting finance
