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Norfolk and Suffolk businesses borrow against cars and construction tools to get through crisis

PUBLISHED: 09:55 29 April 2020 | UPDATED: 09:55 29 April 2020

Businesses can borrow against vehicles to get access to government loans, says Credo  Picture: PUMPAPICTURES

Businesses can borrow against vehicles to get access to government loans, says Credo Picture: PUMPAPICTURES

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East Anglian firms are refinancing assets including vehicles and machines to gain access to government loans to help them through the coronavirus crisis, a finance broker says.

Trevor Parsons, sales director at Credo Asset Finance in Norwich, said his firm had been successful in cutting through red tape on behalf of businesses trying to access the government’s Coronavirus Business Interruption Loan Scheme (CBILS).

Many firms had reportedly been turned down by banks and lenders when trying to access the scheme, he said, but the firm had helped applicants to receive the full amount.

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“As well as the standard loan, many people aren’t aware that there are a number of scheme options within CBILS,” he said.

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One popular version the firm was able to offer is to refinance business assets, from £50,000 to £250,000, to help with cashflow, with this repaid over up to 60 months. Unencumbered assets, from vans, cars and other vehicles to construction and other business machinery equipment can be used.

“Even if the asset is currently financed, if there’s less than 12 months to run it can still apply,” he said.

“Equally, equipment purchased for cash in the last three months can be refinanced to open up cashflow that might be vital right now. Businesses have more options than they might realise.”

Credo Asset Finance, which was launched in 2005 as a business and personal asset finance specialist, has brokered more than £320m to 7,500 local businesses in Norfolk and Suffolk.

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