Your Challenge
We provide Financing based on Movable Assets and not on Balance-Sheet ...
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Hidden value in your Machinery & Equipment
Most companies do not realize how much value is hidden in their Machinery ...
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Sale & Lease Back
We buy all your Machinery & Equipment and provide you with the cash and consequently we lease back the equipment ...
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Hilco Asset Finance is your provider of asset-based financing solutions. We specialize in used machinery and production equipment of all asset classes. While creditworthiness is the focus of most Lenders and Banks, we focus exclusively on the value of your existing machinery.
Our clients face their own challenges: restructuring, retirement and consequent sale, distressed situations or change of management, just to name a few.
Our leaseback solution offers business owners financial flexibility and the ability to track the ongoing worth of your assets.

Possible occasions for cooperation:

  • Expansion
  • Take-Over
  • Management Buy-Out
  • Partner Buy-Out
  • Management Buy-In
  • Company Restructuring
  • Pay-Off of existing Bank Loans
  • Liquidation

The advantages at a glance:

  • Fast and flexible supply of liquidity
  • Credit- and bank-independent financing
  • Pure internal financing from own strength
  • Strengthening of the equity ratio and thus of the credit rating
  • Generation of extraordinary yields while raising hidden reserves
  • Tax deductibility of lease installments as operating expenses
  • Continued use of machines after sale without interrupting production
  • Reduce dependency on house banks by diversifying the financing structure
  • No covenants

FINANCIAL IMPROVEMENT

Through the sale of machines or production facilities and the simultaneous leasing back of these machines, your company will show improved liquidity.
Our team has years of experience in the valuation, marketing and financing of used machinery and equipment. We rely on a network of established experts and guarantee you individual and competent advice, a reliable appreciation of the assets and a quick and professional implementation of the financing.
Please contact us on info@hilcoaf.com to find out more about our solutions.

INDUSTRIES SERVED

Medium-sized companies from the traditional manufacturing industry (automotive, production, pharmaceutical etc)
Average annual turnover
from EUR 5 – 200 million
icon 3
Capital requirement
between EUR 1 – 20 million
  • Metalworking
  • Woodworking
  • Food
  • Pharmaceutical
  • Cosmetics
  • Electronics
  • Printing
  • Energy and Mining

PRACTICAL EXAMPLES

We finance companies from the traditional manufacturing industry with valuable machinery. Below is an overview of possible Sale & Lease Back applications. Is your concern not among them? We will gladly advise you and examine your requirements for a possible Sale & Lease Back financing solution.

Scenario 1:

Replacement of a shareholder with funds from sale and lease back

Situation:
One of two shareholders of a mechanical engineering company wants to leave the company. The remaining shareholder needs liquidity to buy the shares from their partner.
Solution:
Hilco Finance acquires the valuable, largely owned machinery and at the leases them back to the company.
Success:
With the newly gained liquidity, the exiting shareholder can be paid out. The remaining shareholder can continue with the well-positioned company and, at the end of the contract, purchases the machines through the buy-back option.

Scenario 2:

Restructuring of a traditional company

Situation:
A traditional company in the field of mechanical engineering with a turnover of approx. EUR 20 million and 160 employees has to refinance its debt. Due to a liquidity shortage, there is a threat of a termination of existing credit lines by the banks.
Solution:
With the consent of the creditors, the machinery base is sold to Hilco Finance and leased back directly to the company. At the same time, further financing options for stability are used: factoring, a mortgage-backed loan and a personal loan are put into place.
Success:

Through the use of alternative financing possibilities, the company can replace the bank loans or other debt and continue the initiated restructuring.

Scenario 3:

Sale & Lease Back as leverage for a turnaround investor

Situation:
An investment company wants to take over a company in the field of plastics bottle manufacturing. As a result of the credit crunch and the poor rating of the target company, the banks requested for refinancing not willing to provide solutions.
Solution:
Hilco is invited into transaction to provide financing based on the machinery & equipment.
Success:
As a result of the new liquidity generated by the sale of fixed assets, the investment company reduces its investment of own funds. The leverage effect of a business acquisition is achieved.