An existing UTB customer wished to raise funds against an unencumbered coach in order to purchase some older vehicles to fulfill a local authority contract, to refurbish another vehicle and to pay off some existing commitments.
The vehicle offered as security fell short of the value required to achieve the necessary level of funding and our customer was reluctant to pledge further vehicles for the full term of the loan.
We therefore negotiated to take security over another unencumbered vehicle owned by the operator but for a short initial period only, after which the loan balance would be back within an acceptable LTV and the second vehicle would then be released as security from the loan.
By working closely with our broker partner, we were able to arrive at an acceptable solution for the customer and the Bank.