Before any asset finance agreement can be started, the finance company has to be in a position to take good and clear title to the assets in question.
Before any asset finance agreement can be started, the finance company has to be in a position to take good and clear title to the assets in question. Over and above this, finance companies generally insist that the assets are situated at the desired premises and are fully commissioned. Thus, should a supplier require staged payments, or if there is a long lead-time to commissioning of the asset, there will be a period of time when money has to be spent but no finance agreement is in force.
It is possible in these cases to arrange a Pre-Inception Credit facility that is, for all intents and purposes a short-term overdraft from the finance company. You will pay interest on any money advanced, and once the asset is fully commissioned and title can be taken, the HP or Lease agreement will be incepted. Complete our Online Enquiry Form for more details or call 0800 0735353.
As no title in assets has been taken, the Pre-Inception Credit facility is unsecured. It is thus generally only available to corporations with a strong financial standing.
Use our Online Enquiry Form on the right hand side of this page or Contact Us on 0800 0735353 and let our professional team find you a competitive UK Commercial Asset Finance Deal.
