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Capital Raising
3 techniques you can use for raising capital:
Sale and Leaseback
This has exactly the same underlying facility as a finance or operating lease. The difference is that as you own the assets, you will be the supplier. The invoice you raise will be for the lower of current market value or your tax written down value.
Sale and HPback
This has exactly the same underlying facility as hire or lease purchase. The difference is that as you own the assets, you will be the supplier. The invoice you raise will be for the lower of current market value or your tax written down value.
Chattel Mortgage
A Chattel Mortgage is a fixed charge over an asset (not freehold land). The finance company will then advance money against the security of these chattels. Their charge will be registered, but you will not need to invoice the funder for the assets. This is particularly useful if the assets have a low tax written down value or if you have concerns about posting a profit/loss on disposal. Please note however that Chattels Mortgage are generally only available for corporate bodies to which English Law applies (Scottish Law does not recognise a Chattel Mortgage). Also, Chattels Mortgage are not usually applied to marine vessels or aircraft due to the fact that are not UK sited.
Sterling Capital Reserve Ltd
Sterling House
10 Wheatcroft Business Park
Landmere Lane, Edwalton
Nottingham NG12 4DG
Tel: 0115 984 9800
Fax: 0115 921 5550
Map and Directions to our Office
