Key Finance’s new product funds the “traditionally impossible”

Key Finance’s managing director, Henry Mounsey (pictured above), told Asset Finance International: “Since we have been a leasing partner to some of the leading blue chip corporations for over 30 years, Key Finance has an unrivalled understanding of the most complex financing projects.

“Our new 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.”

Key Finance was established in 1979 by current chairman John Mounsey who brought to the company a successful career straddling both IT and leasing at blue chip corporations including IBM, ICL and ITEL.

John Mounsey “wrote the first reference book on leasing in 1988, helped Hewlett Packard to develop its own lease strategy when PCs went mainstream in 1991 and attracted clients outside of the IT sector”.

Henry Mounsey stressed: “whilst retaining those blue chip clients, Key Finance now works with companies of all sizes throughout the UK – and in many different sectors. But all have the same requirements: to grow their businesses by securing bespoke and flexible finance.”

He added: “PBL 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.”

Client with ambitious growth strategy

As an example, Mounsey quoted the case of a food distribution and retail client that required lease finance to supplement other banking facilities in order to achieve an ambitious growth strategy. The need for new shop fits and existing store refits formed part of this strategy.

“All those projects without exception,” he explained, “have been funded by Key Finance. We have completed over 300 similar projects with this customer. We also work in conjunction with them to offer lease finance for shop fits to all of their franchisees.

“PBL has been particularly successful for the customer as they are able to use this facility to provide an additional service to their franchisees for the lease period, all whilst maintaining tax advantages/benefits. The customer also uses PBL to finance larger commercial projects, such as refits of warehouses and distribution centres.”

Working closely with the customer, Key Finance was able to fund 100% of their project costs, every time. “We ensure that sufficient facilities are always available so that our customer can make decisions and take on new projects with total confidence,” he added.

Key Finance, which employs 15 staff at its Cobham head office, has an average transaction value of around £500,000 over a typical five-year term and the company is currently actively seeking to expand its base of big-ticket customers.

Mounsey said: “Turnover in the 12 months to May 2016 is forecast to total some £20 million and the company is actively on the look-out for new appointments of experienced new-business staff to continue our current growth plans.”