In the week between Christmas and the New Year it is generally difficult to conduct real business as most institutions are either closed or running on minimal staff, especially in the banking sector.
We took an enquiry from a client a few days after Christmas who owns a collection of substantial classic cars. He needed to raise 1 million from his 1.7 million Lamborghini Muira SV for a business project and needed it quickly. Understanding the time pressure and against the seasonal restrictions my team qualified the enquiry fully and knowing exactly what information is required to support such a high value enquiry, went to work.
Our client provided the relevant supporting information which is crucial to building a sound case for our underwriters. The key here is that whether the value is high or low the principles of underwriting are the same. It is often considered that we just plug information into a computer and the machine indicates yes or no, which is far from the case. When underwriting we are looking to establish the following key points – are you who you say you are, can you service the debt and is the asset valued correctly keeping the lender asset secure? Sounds simple, but when you pile in the compliance and responsible lending laws the whole thing becomes a little more challenging. We no longer have a sales team but a team of sophisticated credit analysts working to meet both your expectations, comply with the law and satisfy the policies of the lender.
Capital release transactions (or re-finance as it is often known) add additional complications as we need to physically inspect the car, confirm you have true title and confirm that the value you see is the same as our and ultimately the lenders valuation.
So, back to the Miura: with the full support of our client providing the required financial information and the skillful work of the team, we had a formal offer for £1 million back to him in three working days. The whole transaction completed and funds paid to our client in five working days.
We can now offer capital release on a Regulated Hire Purchase agreement, offering flexibility with early settlement and over payments and full consumer benefits. Well done team, and thank you to our client for working closely with us to reach his goal. Capital release is available on any car of any value.