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Factoring with a poor trading performance

Many business believe that they are not eligible for an invoice finance product because they have a poor trading history. This will almost certainly be the case if you require an invoice discounting facility. This might also be true if you approach a high street bank for either invoice discounting or factoring. The good news  is that even if your bank has knocked you back for a factoring facility there are many independent factoring companies specialising in this area and they are able to take a more flexible approach to helping a business.

The problem with the banks is that factoring and invoice discounting is not really what they are about or it is not a core product. In our opinion most banks are a jack of all trades but a master of none. An independent grows its business on the back of the smaller and more challenging deal. It is willing to go the extra mile to assist a business. It understands that the sucess of running a factoring factoringcan be the difference between a business succeeding or failing. It also will take into consideration the quality of your debtor book which if it is of good quality it will certainly assist in obtaining a factoring facility.

Remember there are so many factoring companies to choose from and as such it can be a minefield when it comes to choosing the best provider for your business. A good independent broker will be able to narrow the oice of finance companies down to the best two or three saving you time , effort and money. WHICH ONE IS BEST FOR YOUR BUSINESS WILL DEPEND ON YOUR LOCATION, TURNOVER, QUALITY AND QUANTITY OF YOUR DEBTOR BOOK AND THE LEVEL OF ANY PROBLEMSWITHIN YOUR BUSINESS.

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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.

 

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