BestAdvice fires the questions at James Cassidy, associate at Sirius Finance.
BestAdvice (BA): It’s now a year since Sirius Finance launched its asset finance offering. How did the launch go and what do you offer to clients?
James Cassidy (JC): Sirius launched our asset finance offering to complement our existing advice service for SME and High Net Worth clients last year. We hit the ground running, with a huge amount of demand over the last 12 months, and we see the market as a major growth sector, as well as an essential business offering for Sirius and Brightstar.
We work with a number of lenders to provide funding solutions for clients, offering options across hard asset, soft asset, and structured asset finance, predominantly operating in the Tier 1 and Tier 2 space.
Asset finance is a direct parallel for the business, especially given our high concentration of SME and High Net Worth clients.
BA: What’s the difference between hard assets and soft assets?
JC: Hard assets include things like commercial vehicles, plant and machinery, construction, industrial, marine and aviation and agricultural. Whereas soft assets include things like catering equipment, IT equipment, telecoms, scaffolding, gym equipment, fixtures and fittings, retail and franchise, broadcast and media equipment.
We can arrange finance to buy these assets, but also to refinance hard assets.
BA: How can hard asset refinance of existing loans support a business?
JC: Our structured asset finance product offering is particularly pertinent in the current economic environment as it provides clients with the ability to reduce their monthly interest liability and deliver an essential cashflow injection.
The refinance of hard assets can give a business enhanced cash flow, which can help with restructuring and turnaround, and support future capital expenditure and business growth.
It can also help with Management Buy Out or Management Buy In, business acquisition, raising deposits for new asset and property purchases and equity release.
BA: Can you give an example on a case you have worked on?
JC: We recently finance a Scania 770S V8 Highline truck for a second-generation haulage business. The truck cost £165,000 and we structured the loan over a 5-year period. The deal completed within two weeks of introduction and we look forward to further supporting the client with their business expansion plans.
BA: What are your plans for the future?
JC: We are looking to grow organically and recruit in due course. Our infrastructure is in place and pipeline is strong following our soft internal launch, on which we are already completing on live business. We expect many more real estate finance brokerages to follow our lead and expand their offering to include asset finance.
