MORE than a quarter of companies across the Yorkshire and North Lincolnshire regions are keen to refinance their assets but almost half of them don’t know how to start, according to new research.
The Close Brothers Business Barometer, which canvasses the opinion of small and medium-sized enterprise owner managers on a range of issues, surveyed 50 companies in Yorkshire and North Lincolnshire.
Mike Randall, chief executive of Close Brothers Asset Finance, said: “We see consistently that companies want to expand, know they need finance to do so but are stumped when it comes to making the first move. This is especially true when it comes to realising that their existing assets have a value that could be released, in order to improve working capital and investment potential.”
The business baramoter also found that 18 per cent of companies surveyed in the region thought that refinancing their assets was a move of last resort.
“It’s hardly a desperate thing to realise the value of assets you’ve already paid for and put to work,” said Mr Randall. “That’s not a measure of last resort it’s an incredibly smart thing to do with an asset that is only declining in value.
“The problem is many business owners and managers are stuck in a financial regime which has led them to rely on term loans and overdrafts. While these are not poor financial solutions they should be part of a mix that increasingly includes asset finance, such as refinancing and sale and HP back.”