Compare ^{Pre-Pack Administration Finance} Options With Funding Agent

Traditional Pre-Pack Finance is available to established UK businesses that have a viable recovery plan but are facing insolvency. Typical amounts range from £50,000 to £2 million, with lending terms of 6 to 24 months and rates between 8% and 20% per annum. The process usually takes 2 to 4 weeks, involving due diligence, accurate asset valuation, and setting up a new company framework. It is widely used across retail, manufacturing, and service sectors such as retail, manufacturing, and service sectors.

Asset-Based Pre-Pack Finance leverages high-value business assets, such as equipment or property, as security for funding. Typical borrowing can range from £100,000 to £5 million, with terms from 12 to 36 months and interest rates from 6% to 18% per annum. The process includes professional asset appraisal and can take 3 to 6 weeks to complete. This approach is strong in logistics, heavy industry, and construction where assets are central.

MBO-Focused Pre-Pack Finance is for management teams with clear plans to steer the business recovery. Loans are usually from £150,000 to £3 million over 12 to 48 months, with rates between 10% and 22% per annum. The process can take 4 to 8 weeks and focuses on appraising how well the current management can deliver future success. This type is particularly beneficial in sectors like healthcare, technology, and media.