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Archive for December, 2008

Bank Overdraft or Invoice Factoring

Monday, December 15th, 2008

Not only are we midst of a recession but when it comes to the banking and finance sector we are heading into unchartered territory. More and more banks are restricting borrowing  to their own customers (and the good ones at that). XL Business Finance are seeing more and more customers  wishing to switch from bank overdraft to factoring or invoice discounting. Most overdrafts are repayable on demand and the banks can and do withdraw overdraft  facilities at the first sign of trouble. Never has it been more true that banks are happy to give you an umbrella, but at the first sign of rain they want it back. Why take the risk? Not only will a factoring or invoice discounting facility replace your overdraft facility it can quite often provide additional working capital and will grow with your business.

Providing you are operating within the terms of facility factoring or invoice discounting it won’t be pulled from under your feet. As an independent factoring broker, XL Business Finance can guide you through the maze of different factoring companies. Not all factoring companies are the same and we can certainly add value in helping you find the right funding partner.

New Start Business Finance

Wednesday, December 10th, 2008

Obtaining finance for new start businesses can be tricky at the best of times. High street banks and finance companies have virtually shut up shop. And at the best of times they would require costly projections and business plans, get the customer to jump through hoops and probably say no. Thankfully there are still a handful of lesser known smaller companies willing to look at asset finance leasing for new start businesses. Providing the proprietors are home owners with a bit of equity and have a relatively clear personal credit profile it may be possible to obtain finance up to a certain level without too much of a problem. Admittedly personal guarantees will be required and the rate will be higher than a high street bank but might enable the business to borrow in a tax efficient manner and obtain the funding for the much needed piece of kit.

Tis the season of Refinance

Monday, December 1st, 2008

Batten down the hatches! Christmas is coming!  Sales down, bank balanace in the red. Just what a faltering economy needs is a shut down for two weeks over the Christmas period. How is your cashflow going to survive until the middle of January? Well we are currently receiving an unprecedented number of enquiries about refinancing existing machinery. So long as a business asset can be indentified and it has a value, it can be refinanced. We can even refinance equipment which is already on finance with another funder. So long as it has equity a deal can be done. We have even done deals where we have taken out existing finance companies providing a large lump of cash for working capital and provided a lower monthly payment.