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Archive for October, 2009

Restructuring Finance

Tuesday, October 6th, 2009

Many businesses are struggling for cash flow in the current  difficult trading conditions. The ability to ease the monthly debt burden is a top priority of many finance and  managing directors. Thankfully there are many ways XL Business Finance can assist to ease the pressure.

The biggest problem is the ability to collect cash from customers who themselves struggling for liquidity. Combined with the reduction of credit limits this can produce a double whammy in terms of having a negative affect on cash flow. Not all factoring and invoice discounting companies are the same. Far from it. XL Business Finance has helped many businesses choose the correct factoring or invoice discounting company for their particular needs. In addition we have help plenty of businesses switch to a more flexible factoring company.

Another way we can add value is to look at the monthly hire purchase and leasing payments. It might be possible to restructure these payments for a cheaper monthly outgoing. And if there is enough value in the equipment it may even be possible to release cash from the  equity from within the machinery. It must be pointed out that refinancing existing machinery is sometimes at a premium in terms of interest rate and as such we can provide honest and impartial advice as to whether this route will work or not.