Case
Study
A
machinery dealer was aware of a well maintained, sought after item available
overseas. He negotiated to buy it but had most of his cash tied up in
other deals.
Although
the bank was prepared to lend him the money, they needed collateral
security (such as property) which he did not have.His
usual HP provider would only finance the asset once it had arrived in
the UK, and required a substantial deposit.Fortunatley,
Davenham was able to provide another option. We funded the deal (making
the purchase by Letter of Credit) paying 100 per cent of the purchase
cost. We also covered the VAT charge.The
machine was shipped to the UK and eventually sold. The dealer obtained
his payment and repaid Davenham the purchase cost and interest.
In
this way Davenham helped a client do a deal that, otherwise, would have
been missed.
