Factoring is simply the means of releasing cash against unpaid invoices and providing the financial freedom to grow your business. Any search of the internet will show hundreds of businesses offering factoring services. So how do you know which one to choose and which ones to avoid? Factoring is not just about providing cash and financial freedom, it is very much about adding value. Credit control is a very important part of the sevice and differnt finance companies are better at it than others. XL Business finance is an independent finance company and has provided impartial advice to many happy clients as to which factoring company will best suit their particular needs.
The ability to release 90% of unpaid invoices before they are due can provide a massive cash flow benefit to any business. However for many businesses it is important to obtain a degree of confidentiality to maintain a good client rapport. Traditionally confidential invoice discounting would have been the chosen product however n the credit crunch and recession it is more difficult to obtain a confidential facility. Could confidential factoring be the answer to your problems?
In the current economic climate we are faced with the unfortunate fact that many struggling businesses will be forced to go through a pre planned administration or pre pack. In doing so a business may have a fresh start and typically the victims will be the crown , financial institutions and unfortunately some creditors and members of staff. It is a harsh reality of the recession but in our opinion it is better that a business be given a second chance to continue trading rather than the business folding completely. However any business going through a prepackaged administration will have fewer funding options.
The ability to release cash against unpaid invoices undoubtedly can have a positive impact on the cash flow of a business. The extra cash can provide the freedom to grow the business and the added value of having someone chase your debts will also provide a massive bonus and a boost to the business. Typically a factoring facility can release up to 90% of your unpaid invoices with the added benefit of credit control. However if things are not working out how easy or difficult is it to switch factoring companies?
Financing eequipment from a foreign supplier might not be as straightforward as one would think. Strangely however the larger the transaction the easier it is. Different finance companies have different views of what can and cannot be done so it is worth speaking with a good independent finance broker that can guide you though the various options.
Invoice discounting is simply the means of raising cash against unpaid invoices. Choosing the right finance company can provide the financial freedom to grow the business or in these difficult times it can implybe the difference between survival and failure. Not all invoice discounting companies are the same and it is important to choose the best finance company for your particular requirements.
There are literally dozens of factoring companies, some bank owned and many others are independent. A well run factoring facility can provide a cash lifeline by providing funding against unpaid invoices. The ability to unlock this cash provides the financial freedom that a business requires to develop and grow. However in these difficult times the choosing the wrong factoring company can be the difference between a business succeeding or failing. It is even more important for the small business because the wrong choice of factoring company can potentially lead to devastating consequences. So how do you select the best factoring company?
XL Business Finance can provide a fresh outlook to business financing. Whilst we cannot guarantee every business will have success in obtaining the required amount of funding we believe that if finance is available we will find a finance company to meet your particular needs. In addition we believe that for every high street bank product there is an independent finance company providing an alternative. We are not saying that all independents are better than banks. In certain circumstances we do recommend bank products however it is a case ogf knowing what is available so we have to look at each individual case on its own particular merits.
The recent publicised report stating that intrest rates will stay at 0.5% until 2011 and will remain below 2.0% until 2014 suggests that recovery from this recession will be longer than expected. In terms of the banks attitude to risk and lending I think we can see a protracted inflexible and cautious stance on lending for many years to come.
Invoice Finance is simply the means of releasing cash against unpaid invoices. Invoice finance takes place in a variety of forms and can include invoice discounting, confidential invoice discounting, factoring, confidential factoring and trade finance. Which ever facility best suits your specific requirements the ability to release additional cash can certainly help a business with their cash flow.
XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.
XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.
