Asset finance leasing - XL Business finance

Considering Invoice factoring?

February 1st, 2012

Invoice factoringInvoice factoring is the immediate injection of cash against value of outstanding invoices. Also known as account receivable factoring, invoices are raised up to 90% of the invoice value is released within 24 hours, the remaining 10% is paid, less a small service fee, once invoice factoring payment is received from the customer.

A factoring facility provided by the most appropriate finance company will leave you free to unlock the true potential of your business rather than spend your time juggling bills and chasing customers for outstanding invoices.

Choose the wrong finance company however, and it could have disastrous consequences on your business.

The factoring company which will best suit your business depends on a number of differing factors.

Geographic location – independents can be regionalised rather than nationalised.

Turnover – Some Factoring companies specialise in a certain turnover level.

Length of time trading.

Credit rating – Banks will only fund businesses with reasonable credit.

Number and quality of invoices.

Concentration levels – Some funders may exclude you if you have only one or two customers.

Any foreign invoices? – Some factoring companies have an international presence.

Is part of your business contractual? – There are only two factoring companies that can provide a facility.

Do you need credit insurance? – Banks and independents provide very different types of credit insurance.

Do you need an overpayment? – Certain factoring companies can provide a top up via an EFG loan.

Do you have any other borrowing facilities with your bank? – This may or may not work in your favour depending on the circumstance.

We advise;

Always see two and a maximum of three –  any more and the factoring companies won’t take you seriously.

Make sure you understand the charging structure – rmember the headline rates do not always show the full picture.

Make sure you are comfortable with the individuals involved in the business.

Make sure you know the credit limits of your top ten customers.

Don’t be afraid to ask questions and arrange a visit to their premises.

For more information please do not hesitate to call us.

Guest Blog: Increase your gross profit margin

January 31st, 2012

The amount of profit you make is due to either your success or failure and ultimately fuels the growth of your business, generates a financial support for the owners and provides for the well being of the staff.

To increase your profits you need to determine factors contributing to your gross profit and your overheads. Gross profit requires you to either expand your sales income while controlling your direct costs, or reduce direct costs to increase gross profit.

WH Smith the high street retailer has pleased the financial markets by delivering lower revenue but with a higher margin %. As they say ‘revenue is for vanity, profit is for sanity, and cash is reality’.

To do this you need to ensure the following:

• You know and understand your market/s and your competitors
• You have full product and/or service knowledge and you are technically capable in managing all aspects of the business
• Your service and/or products are of the highest quality, delivered on time and run in accordance with any legislation or other specifications.
• You apply marketing campaigns that are cost-effective but increase your sales. These include in-house promotions, leaflets, press releases and adverts.

Your business overheads also need to be kept under control and requires you to monitor, review and strategise for the following:

• Business Expenses – keep to an absolute minimum, and ensure that any additional overheads you assume result in increased profitability and/or efficiency.
• Increase Overheads – ensure that you have reviewed the market and established where the best place is to purchase your stock. Reliability and costs need to be justified.
• Assets acquired on finance – Review and check your finance options to see if you can getter a better deal elsewhere or reduce your general loan costs
• Reviews – Many businesses could benefit from a regular review of their telephone and insurance costs. Even bank charges can often be reduced through negotiation or review.
• Credit – Regularly monitor your credit account customers to avoid bad debts occurring and find the best credit card deal relating to your business.

Roger T Brown
Consultant
http://www.nuOrder.co.uk

 

Need some additional cash for your business?

January 30th, 2012

Just because the high street banks are not lending money it doesn’t mean that no one is lending money. For every high street lending product there is at least one independent finance company providing an alternative. Often these alternatives can be more flexible and creative. XL Business Finance has been helping businesses for over 12 years find innovative and flexible business financing solutions

Alternative forms of funding can be provided for leasing , hire purchase, refinance of assets, factoring, invoice discounting, international trade finance, construction finance  and commercial mortgages. In addition it may be possible to obtain Europeans loans monies if you know where to look as well as the government banked EFG funding. Alternatives forms of funding are not just restricted to those businesses that have been knocked back by their bank. Long established and profitable business may also benefit from getting an alternative viewpoint

 

 

Declined by bank for funding-European Loan Money might be available!!!

January 20th, 2012

Any business that has been declined funding by the bank might be eligible for European  Loan money. Depending on your location loans of £50-£250k may be available for expansion and development. The business whilst must have exhausted their options with the banks ( which isn’t very difficult nowadays) must be wanting the cash for positive reasons. The cash might be required for additional working capital to purchase stock for example to fulfill a full order book. It might be a deposit for a new machine or property for example. The idea is that the loans are available for businesses that will potential create new jobs in their particular sector or area. Call Mark Redman of XL Business Finance on 07748 635 206 to find out if you maybe eligible for funding.

Confidential Credit Control

January 18th, 2012

Need help with collecting payments but don’t need or want  full factoring?  It is not commonly known that it is possible to outsource this function to a specialist credit control company. Why waste valuable time chasing and collecting aged debtors when this can be done on your behalf in a cost effective and efficient manner. Many businesses loose sight that this is probably one of the most important aspects of running a business. XL Business Finance has teamed up with a leading credit control and bad debt recovery firm to provide support and advice to businesses requiring  additional help in collecting their debts.

In additional credit control can be provided in a confidential manner with your dedicated creditor controller working as one of your employees. A number  of these credit control companies also have their own legal team therefore providing a dove tailed solution should a payment become overdue , disputed or bad. In the current economic climate of slow and bad payers there is evidence to suggest that the quicker and harder you hit your bad debts the more likely you are to recover your monies. Therefore if you find your aged debtor report with too many customers in the 90 day plus column you seriously need some help.

 

 

Business Finance for the construction industry

January 10th, 2012

Anyone involved in the instruction industry will know how difficult it is to obtain working capital facilities. Due to the contractual nature of invoicing and applications for payment traditional forms of invoice finance are not available. The good news is that there are two or three independent finance companies that can provide funding against contractual debt and application for payments.

Specialist invoice finance companies use their own QS’s to asses work and provide funding that traditionally isn’t available via the high street banks. Whilst prepayments might not be as high as traditional invoice finance and factoring facilities the ability to get 50 or 60% of outstanding payments provides vital working capital for many businesses. As with any form of business finance the finance companies in question are all very different animals and provide slightly different forms of funding. XL Business Finance with over 12 years of experience can help you with speaking to the right funder.

 

 

Asset Refinance available from Prime funder

January 6th, 2012

Until now stand alone asset refinance has only been available from specialist  and traditional more expensive finance companies.  However, a prime funder has now entered the market offering to refinance plant machinery and tangible assets providing it is for the right reason. Funds might be required for expansion, deposit on a new machine, an MBO or an MBI.

The balance sheet of the business must be reasonable and the business must have been trading for more than three years. Providing there is a strong rationale for the refinance and the equipment has good value we have a very good chance of obtaining some funding. Businesses which are struggling and need to refinance kit because they  and are struggling to pay creditors may still be able to obtain funding but it will be via a very different type of lender.

Normally it is possible to provide an indication of what is available within 24 hours. All we need to get the ball rolling is a list of plant and machinery to include age make and model. We can then get a value of the kit for refinancing purposes which enables a quick assessment of the viability of the refinance. XL Business Finance is one of the Uks leading funders in asset finance and refinance and we have 15 years experience in doing such deals.

 

 

 

Collecting Cash Before Christmas!

December 6th, 2011

It can be difficult to get payments at  the best of times from your customers without having to deal with  Christmas.  Christmas often sees people spending money on presents  rather than on their due and payable accounts.  The following methods have been expertly provided by Roger Brown of NuOrder Intelligent Financial Business Consulting:

  • Send accounts early.  Sending your accounts out earlier than  normal will help you to get money in quicker and payments on time.   December may see you struggling to receive any money so send them  a.s.a.p.
  • Phone customers.  You might like to ring your customers  prior to their account being due to ensure that you will receive  payment on or around the account due date.  This could reduce the amount  of people likely to pay late.
  • Offer a Christmas discount.  As a  Christmas generosity you can provide a small discount to those  customers who pay their bill prior to the due date.  Your  discount only needs to be 1% or 2% off the total price payable which to a  customer can be a lot, especially when saving to buy their loved one  something special.
  • Deposits.  For new customers wanting to use  your business prior to Christmas you may decide to implement an initial  payment strategy which allows you to collect a portion of money from  your customer, ensuring that you have sufficient money coming into your  business.  Furthermore, if your customers are adaptable to your business  you may decide to ask for a deposit, only during the months of November  and December.
  • Part payment opportunities.  Depending on the  size of your customer accounts and orders, a part payment system might  be suitable for your business.  This system allows you to collect money  on a regular basis over a specified period of time without putting the  customer into hardship.  Again this will help you to collect funds for  your business.
  • Competition.  Again this will depend on your type  of business and what you can offer, however a competition can be setup  for account payers.  You might have a Christmas hamper or go to an  extreme such as a Christmas holiday, in which your customers will enter  free when they pay their account by the specified date.

Getting paid for your goods and services on time is important and  therefore you may need to implement some measures over the Christmas  period to ensure you receive your money when it is due and payable.

 

 

Euro Crisis and the possible affect on Business Finance

November 16th, 2011

I think it goes with out saying that the continuing eurocrisis will have a  significant affect on business lending via the high street banks and finance companies. If any of the euro companies default on their debt there is the potential for significant bank write offs which in turn require the banks to recapitalise resulting in less cash for the business borrower. The goods is that there have always been and always will be alternative forms of business finance.

XL Business Finance has for the last 10 years been providing alternative forms of business finance. Whether a business is looking for invoice finance such as factoring or invoice discounting, asset finance or refinance, or alternative forms of specilaist finance such as trade or construction finance there is always an alternative to the high street bank.  These finance companies maybe lesser known but they are often specialists in their particular sector and can often provide alternative and often more flexible and creative forms of funding.

 

Organising retrospective asset finance

November 2nd, 2011

Ever wished you had funded your cap expenditure requirements instead of paying cash. Did you know it is possible to organise retrospective hire purchase and finance lease deals within 3 months of purchase?

So many businesses come to us asking for additional working capital following cash purchases of  plant and machinery. In today’s economic climate trading conditions can rapidly change and it makes prudent business sense to fund as much as possible. Cash is King as they say.  Funding is available at decent rates, subject to credit of course and  providing you meet the funders lending criteria. If the purchase is more than 3 months ago don’t worry, finance may still be available but it is a different type of funding. Asset refinance is provided by a number of specialist asset based lenders and  it is an area that XL Business Finance has many years experience.

 
 
 

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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