Block discounting is a form of funding for lenders and independent finance providers allowing immediate access to the capital tied up in customer finance agreements. This means that new business pipelines can be maximised enabling more efficient growth of the lending book.
HOW DOES IT WORK?
As a lender you will be underwritten for a credit line. The terms of your credit line are structured specifically to you and your lending book. When you wish to draw against the credit line, you will send a “block” of your own finance agreements to PEAC who will pay a “discounted” percentage of the value of these back to you. A loan agreement is set up with the repayments structured to match the profile of the underlying “block” of agreements and are repaid over the average life of those agreements. In this way it will remain a cash positive transaction for you.
For more information on how Block Discounting works, please contact firstname.lastname@example.org
FOR OUR CLIENT
BENEFITS OF BLOCK DISCOUNTING
- Funds can be released within 24 hours
- Our client retains control over their lending, collections, and customers
- There are no non-utilisation fees
- The facility is uncommitted and undisclosed to your clients
- The funding is fixed term, providing cashflow certainty
Block facilities at PEAC range from £0.5 million to £10 million and can be drawn against the below assets:
- Plant & Machinery
- Professions loans
- Soft assets
This list is not exhaustive, but an example.