XL Business Finance
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Cashflow problems?

Just over a week into the new year we have already had several enquiries from businesses having cash flow difficulties following the Christmas break. The first enquiry was for a printing business looking to refinance existing machinery in order to reduce the monthly payment.

In addition the business was applying to its bank for EFG funding of £40k. In our opinion a business that has had some trading difficulties is unlikely to be eligible for bank support even with the banking of the EFG scheme. However the customer didn’t realise that not only could we reschedule the repayments on his main press but we can also release any additional equity. And guess what based on the current trade valuation we can refinance the press, release an additional £50k and provide a monthly repayment no more than he is paying at the moment. Happy days. Well until the cash runs out.

The second enquiry we had was for a timber business importing wood from Eastern Europe. The business until recent years had been fully supported by a high street bank providing a small overdraft and an import finance facility. The business being under pressure from the bank to reduce its exposure came to us for alternative funding arrangements. We were able to introduce the business to an independent trade finance company and as yet we are still awaiting the outcome. Whilst alternative funding is never a guarantee there are alternatives to the banks and it is just a case of knowing who does what!

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