Key Finance unveils unique Project-Based Lending (PBL) finance initiative

Innovative lease financing approach funds businesses based on their ability to pay,
not the value of equipment and assets

COBHAM, SURREY, UK, MONDAY MARCH 14TH 2016: Key Finance has launched a new leasing tool which provides complete funding for core and associated project costs.

Having been a leasing partner to some of the world’s leading blue chip corporations for over 30 years, Key Finance has an unrivalled understanding of even the most complex financing projects.

Its new Project-Based Lending (PBL) option has been introduced to provide a clearer solution in markets where funding a whole project is traditionally impossible, normally due to project duration, multiple sites or multiple suppliers. Key Finance is able to pull all of this together to provide competitive and convenient financing.

Unlike traditional leasing options which are based on the value of a company’s assets and equipment, Key Finance’s PBL recognises a client’s ability to pay. Traditional leasing options are unlikely to take into account ‘soft’ assets such as fees and services. As it eliminates the need for asset security, PBL will fund 100% of a project.

In short, PBL is lending based on the company’s credit, not the value of its hard assets.

“Key Finance has actually been supplying PBL to businesses for 25 years; we just hadn’t given the concept a name,” explained Key Finance MD Henry Mounsey. “It was introduced to give our clients a better option when they’re looking to fund a new project. As well as ensuring that the project is funded completely – allowing the company to invest its cash elsewhere – PBL can be written on or off the balance sheet, representing a significant advantage in terms of tax efficiency.”

Project-Based Lending has already been provided to some of Key Finance’s longest-standing clients to great effect. For example, Key Finance has provided over £100 million of PBL to a major food retailer as an operating lease. PBL has helped the company grow from £100m revenue to over £1 billion revenue.

Similarly, a substantial luxury goods provider has benefited from Key Finance’s PBL option. Key Finance provided the company with £30 million to refit stores in eight countries and in five different currencies. Tax efficiency played a significant role in providing the correct solution.

PROJECT-BASED LENDING: THE BENEFITS AT A GLANCE

  • Funding in this way means that payments made are an operating cost to the business - PBL is generally 100% allowable against taxable profits.
  • PBL can be written on- or off-balance sheet, representing a significant advantage in terms of tax efficiency.
  • Flexibility. PBL is not a ‘one size fits all’ finance plan; it gives the client options at the front and back end, as well as with payment terms.
  • PBL can provide a new line of credit, with no impact on your banking facilities.

For more information about PBL and other Key Finance products, visit www.keyfinance.com.

NOTES TO EDITORS
 
About Key Finance
Established in 1987 by Chairman John Mounsey, Key Finance is a family-owned specialist lease company providing competitive finance products across both hard and soft assets to international PLCs and SMEs. The business practices, ideals and ethics remain the same as when Key Finance first started serving the IT community nearly 30 years ago.
 
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