Covenant-led transactions

Our covenant led transactions raise funding based on the financials of a company, which allows us to create lending options regardless of the intrinsic value of the asset.

Traditional asset-based lending works on the premise that the asset in question is of high worth and can be used as security for the funder. However, in many cases, the asset in question may not have lasting value. IT equipment, software, office furniture or security equipment for example, are all items that are mission critical to the running of a business, but may have low individual value.

Our covenant-led solution looks at the financial stability of a business and its ability to settle its accounts, irrespective of the value of the asset. This enables us to provide funding for critical investments that might not be suitable under other asset finance options.

Suitable for:

* Audio-visual equipment

* Software

* Catering equipment

* Communication equipment

* IT equipment

* Office furniture

* Shop fittings

* Security equipment

Purchase of receivables

LHE Finance can purchase a stream of payment receivables derived from either underlying rental contracts or managed service agreements.

We have particular expertise in funding receivables from rental contracts and managed service contracts and the assignment of those receivables may be either disclosed or undisclosed to the end user of the asset.

We also specialise in creative funding solutions for non-standard transactions that require bespoke structures and documentation.

The term, pricing and conditions of receivables purchased are all tailored to suit a company’s requirements.