Computer rentals acquisition: assets that depreciate faster than lenders like

The background

The business rented computer equipment — laptops and servers — to business customers on contract. It was profitable and well run, with recurring income from established clients. But when the buyer's bank looked at it, all it saw was the kit.

The sticking point

Laptops and servers depreciate faster than almost any asset a lender is asked to fund against. As security, they were worth little on paper — and on that basis, the bank said no.

The way past it

We rebuilt the case around what actually made the business valuable: the contracted rental income. Recurring revenue from business customers is something a lender can underwrite — far more reliably than second-hand hardware. We backed it with a robust Business Plan and financial projections proving the borrowing could be serviced comfortably, and took the application to a lender that assesses income, not just assets.

The result

Our lender said yes. The £530,000 acquisition completed — funded on the strength of the income the bank had overlooked.

The acquisition completed.

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