XL Business Finance
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Business Financing

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.

We believe that any business should spread their finance requirements via various funders. For example this week we have visited a manufacturing business with turnover of approx £1.0m. The business banked with Abbey National which incidentally provide free banking for just running an account. The business had a £20k overdraft facility which against  turnover of £1.0m wasn’t really enough. The Finance Director who had come from an accounting background still wrongly believed that there is a stigma attached to factoring and invoice discounting which in our opinion couldn’t be further from the truth. They believed that they should be moving to a larger high street bank to obtain an increase in working capital facilities.

Moving to a new bank and obtain a packaged deal on funding arrangements can cause major problems. One bank providing invoice discounting or factoring some  equipment finance and possibly a small overdraft has too much control over the business. We have seen and heard instances where a customer has gone bust. The invoice discounting side to the bank inform the branch that there might be a problem and the relationship manager withdraws the overdraft. The result is another business going bust.

Our advice is to spread it around as much as possible. Use one bank to provide a clearing facility, use another financial company to provide your invoice discounting or factoring and use another to provide hire purchase nad leasing for  capital expenditure requirements. This by far the best way of safeguarding you from the banks!

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