The ‘One Stop Shop' for all your finance requirements....0844 3356550
• Did you know that in St John's Wood there is a specialist asset finance company?
• That in addition to financing cars from our Clive Sutton showroom we also finance from other dealerships
• We finance all types of equipment, commercial vehicles, aircraft and much, much more – see the list attached
Our first newsletter provides you with information about the world of finance and some recent case studies of those individuals and companies we have helped.
Clive Sutton Premier Finance Ltd. was born from the need of the Clive Sutton group of companies to be able to provide the best possible financial services for our clients. Originally our customers were those buying cars from the showroom at St John's Wood and then through word of mouth to customers buying cars from other dealerships and those needing independent advice and help to obtain finance. Today our company is literally a ‘One Stop Shop' for finance enquiries and we specialise in the more challenging proposal as well as providing the best finance rates available for straight forward customers.
Customers we have helped recently:
I Need Some Money!
A customer called over the Christmas period. He needed £90,000 immediately. Question – Could we help? The banks were shut for the holidays. It would take too long for a bridging loan to be set up. One phone call later we had secured an offer of £90,000. All he had to do was to give his cars to us for security. Their total value was £180,000 and we were able to lend him 50%. Time taken – 24 hours.
We can also arrange a quick ‘no questions asked' loan on wine collections, gold, watches, jewellery, art – paintings and sculptures, antiques, boats, aircraft, Shares as well as the more usual property secured loans.
• Customers wishing to put a deposit down quickly to secure a build slot for an exotic car
• Those buying at Auction
• Property Developers unable to jump through the hoops required by more conventional lenders
• Foreign Nationals unable to bring money into the country quickly to complete a purchase etc.
• Those buying items abroad and needing time to arrange finance in UK e.g. buying a car in America which can be financed in the UK as soon as it is registered
• When time is of the essence.........
Can you Arrange Bridging Finance?
‘Help we are completing on a house in a few weeks time and the deposit is coming from abroad – new monetary rules have slowed the transfer of funds and we are going to lose the property if we don't complete'! Tricky one this as the house could not be used as security because of the lending ratios. So we used a commercial property she had and the purchase went through
I am an Alien from Out of Space and I want to Buy a Car!
Well, OK not literally, however he may well have been as he was a foreign national and international business person of no real fixed abode in the world. He had personally visited all the banks he could think of and the doors had been firmly shut in his face. The new ‘irresponsible lending criteria' combined with more stringent ‘risk assessments' has made it extremely difficult for many to get finance - even those who have perfect credit profiles who are UK Nationals. Our customer wanted two very prestigious cars!!!
Whilst our customer was not on the voter's role and did not have a credit history what he did have was a property. It took us several weeks, however we were able to secure the car financed by way of a charge to his property known as a Chattel Mortgage. He drove away happy knowing that when he wanted to change the vehicles in the future the mechanism was in place to easily swap at no extra cost.
Can you Finance Cars that I can keep with my Holiday Home in France? - Yes and Anywhere Else????
Using the same principle as the previous example, customers are regularly purchasing cars in the UK to keep with their holiday home or businesses abroad. As the financial services across Europe are squeezed and interest rates are rising in many countries it makes perfect sense to finance the vehicles in the UK. Obviously, lenders are concerned that a car will disappear if it crosses the channel and many have written into the small print of their documentation that you must not take the vehicle abroad (ignore this at your peril as we know of many customers who have had their cars impounded at the docks and their finance agreements terminated). If the lender can put a ‘Charge' on a property it really does not matter whether the car is in Timbuktu or London as the lender is risk secure if you stop making the payments!
Why not just Remortgage or take a Secured Loan?
• In the current climate it is becoming more difficult to remortgage and often there are penalties to change
• A secured loan does not provide a long term solution a Chattel Mortgage does!
• As mortgages and secured loans are FSA regulated the processes are complex and often intrusive and can be very time intensive.
An Interesting Finance Product - Interest Only Finance!
Now sadly there is only one real contender in this market (unless your own bank will consider) and their underwriting standards are so exacting that they probably reject 75% of all proposals. However, if you match their criteria, consider this at a time of historically low interest rates!
A customer came to us asking to purchase a Ferrari 612 Coupe Scaglietti costing £124,950 in a company name therefore making the proposal outside of the Consumer Credit Act. He put down £62,475 and after two years paid a final payment of £62,475 and paid ...........................only.............. £269.27 each month for the privilege of driving this wonderful car.....!
The caveat is that the lender will only take proposals that fall outside of the consumer regulation i.e. company name and customers of high net worth borrowing over £62,475
Can you Finance Classic Cars?
With property and the stock market not providing the return on capital that it once did, commodity based investment is becoming a safer gamble in our very uncertain times and what better than a classic car! With returns increasing as much as 50% lenders are keen to lend on them. Several finance companies are now lending in this market. The basic criteria are:
1) Deposit 10 to 50% depending on value of car
2) A valuation of asset is required which the customer has to pay for (as per a house)
3) If you are buying from Auction the lenders will take an Invoice from reputable Auction Houses
4) A Pre-Proposal prior to Auction is required to get a vehicle underwritten and customer underwritten
5) The lenders will only lend to ‘High Net Worth' Individuals borrowing over £60,261 or in a company name using documentation outside of the Consumer Credit Act regulation. They will not finance on regulated paperwork because of merchantability quality issues that may arise with the classic car.
(High Net Worth means those earning over £150,000 net a year or those with £500,000 worth of assets excluding own home. These customers can exempt themselves from the Consumer Credit Act).
Also remember that you can use your classic car to raise money to buy another car at auction very easily and quickly....
What about Insuring Classic Cars
The cost of repairing a classic car has no correlation to its value. A recent example we have had is a Ferrari 275 GTS: the estimated mechanical repair and restoration of this vehicle was £175,000 but due to its age, racing pedigree and rarity the vehicle was valued at £515,000. The Insurance Company we use was able to provide an ‘Agreed Value' and arrange for regular specialist valuations to protect against the fluxuating values in the market place.
And Other Insurance ............?
Do you hate going through a call answering service to speak to someone about insurance? Do you get frustrated that insurance companies are not providing the personal service they once did? Today, one is more likely to have to speak to a call answering service on the other side of the world than to speak to a human being who knows you, your requirements and understands how busy you are. We at Clive Sutton are therefore very pleased to be in an association with Stackhouse Poland who we refer all our customers to. Each referral is given their own client manager and a direct mobile number to reach them on. Not only are they able to provide excellent car insurance quotes but they also insure homes, boats, aeroplanes etc – sometimes under the same policy! For more information call 0844 335 6550
Help - my Residual Value is due but the Bank won't Refinance it....
Customers beware!!! With the demise of so many banks you may find yourself caught out when it comes to refinancing your residual value. Leave yourself plenty of time to address this issue. The classic scenario - a customer has bought an expensive car, structured the finance with a final balloon/residual payment and is now finding that they cannot finance it with the original lender. Often customers were told by the supplying dealer or Broker that they would be able to refinance it over another couple of years when it fell due. Unfortunately, whilst this was generally true at the time it was said it may not be now. Customers with finance agreements from the Bank of Scotland, Fortis Lease, Lombard etc. may well have a horrible surprise when the payment falls due for either the bank has disappeared or the bank has stopped lending on a particular type of car or customer. Do not take it for granted that even if the bank is flourishing that they will refinance a residual value. I've known customers unable to refinance because the banks don't like the sector they are in e.g. the hotel business or property developers. Even if you are on the Times Rich List there is no guarantee that the banks will assist!
The solution is often not simple due to the vagaries of the law and the interpretation there of. A common problem is that a new lender may not refinance in the same name so a transaction has to be formed either with an individual or company they own or perhaps with another family member. We at Clive Sutton help to form the transaction if Invoicing is required.
So our advice is to call your lender at least 3 months before the residual value is due and if there is a problem call us immediately.........or else you could lose your car!!!
I have Found a Car Advertised Privately can you Arrange Finance for it?
The answer is yes – if the car has had only one owner, under a year old and under Warranty there are some lenders who will finance direct. However, for all others you will need the assistance of Clive Sutton to inspect the car and to put a sister company into the Invoicing trail. Buying a car from a private seller can be financially dangerous.
a) Inspect the vehicle
b) Assess the sale price
c) HPi Check the car
d) Invoice the car through our company
e) Arrange service/MOT aspects to be undertaken and any extras to be fitted e.g. Bespoke Wheels, Wraps, Audio and Visual equipment.
A fee is required for this service and finance must be obtained through our finance brokerage.
Can you finance Equipment?
From £200,000 Pharmaceutical Dispensers, to Wind Turbines - From IT Networks to Printing Machines – if a serial number can be put on it and the product has a value over £20,000 we have numerous lenders who can assist.
What about Commercial Vehicles, Plant, Trailers, Boats, Aircraft...yes we have access to many lenders covering a wide spectrum of specialities.
Other Finance Questions
What is a Balanced Payment Plan?
A Balanced Payment Plan offers the benefits of a fixed monthly payment however unlike Hire Purchase where the interest is fixed ‘Balanced Payments' track the changes in the finance house base rate, LIBOR or bank base depending on the agreement. As rates fall or rise over the period of the contract so does the interest charge you pay.
How does it work?
You pay an initial deposit and pay the balance in fixed monthly instalments over an agreed term (12 – 60) months.
At the end of the term any variation of interest is reconciled and will be settled as either a credit to you or a charge.
Minimum interest penalty options after 18 months (varies with the different lenders)
Can make lump sum reductions
What is a Day to Day Plan?
As above this product tracks the rises and falls in the interest rates. The main repayment part is fixed however the interest is calculated daily, this means that whilst the capital part is reducing each month the interest part is variable depending on rates.
The cheapest finance product in the market place!!!
Footnote from Kim Jones – Director of Clive Sutton Premier Finance Ltd.
Where is the roller coaster finance ride taking us this year? Two years ago we had the falling off the cliff ride when banks were not lending at all! As we screeched around the corners we jettisoned banks and finance brokers. As the barriers were put down underwriting criteria was tightened up.
Often we hear people saying that the banks are not lending but in reality many banks and lenders feel they are unable to because of new laws and regulations. The Consumer Credit Act Directive introduced last year has impacted greatly on lending – the result is that it is costing the consumer more to borrow money. Some banks are now unable or unwilling to lend money on certain products because of the legislative risk to them.
As we slowly climb upwards again and the finance industry begins to lend money there is a real risk that we could all crash into a pile of paper. One lender is producing a document 24 pages long for cars financed under the Consumer Credit Act Regulations! However, things are improving and the enormous gaps in the market place are being filled by Private Investors and new banks.
For me the most frustrating issue is how few lenders there are lending at the lower APR range. This is leading to some lenders rejecting circa 75% of everything they see for seemingly the most ridiculous of reasons – because they can! With not enough money to lend and too many customers they are cutting their cloth – you could be worth £37m and rejected for a £30K loan at 5% and have to pay 16% with a higher rate lender.
This is where are expert knowledge of the market can help place your application where it will succeed. Our aim is to get the best rate available for you and to manage your expectations about what is possible.
Examples of customers struggling to get the lowest finance rates:
A customer was rejected because his 50 year old company was in the wrong sector – he owned a very successful restaurant that had been trading for 50 years with Grade 1 Accounting information.
An MD with four of the best hotels in London all with Grade I financial information was rejected because he was in the hotel business!
A very successful businessman was rejected because he was a tenant – even though he had a perfect credit rating and had lived in the same house for 20 years.
An employed Accountant earning £125,000, perfect credit rating, home owner with no mortgage was unable to borrow £50,000 at a low rate because he now fells under the legislation of the Consumer Credit Act Directive. There are currently no very low rate lenders for this type of customer other than if you are lucky with the choice of your own bank.
Here at Clive Sutton Premier Finance Ltd we pride ourselves on finding a way to get things done. Whether you are seeking the best rate and believe you deserve it or you know that you have challenges securing finance. If there is a way something can be done we at Clive Sutton Premier Finance Ltd. will leave no stone unturned until we find it !!!!!!!
Finance for: -
• Prestige cars
• Car Finance over £20,000 from any dealership
• Commercial Vehicles
• Classic Cars
• American Cars
• LHD Cars
• Car Hire
• Machinery and Equipment
• Hospital Equipment
• Dental Equipment
• IT Networks
• Refinance of Residual Values
• Pawn Broking
• Secured Loans
• Factoring and Invoice Discounting
• Commercial Lender referral – for loans and property finance
• Residential Lenders referral
Kim Jones – Director
Clive Sutton Premier Finance Ltd.
Please do not hesitate to contact us for a free finance consultation