Asset finance leasing - XL Business finance

Enterprise Finance Guarantee Scheme

April 29th, 2009

We are now finally starting to see some action from certain banks in providing efgfunding. EFG Funding or the Enterprise Finance Guarantee Scheme replaces the old Small Firms Loan Guarantee Scheme. The new scheme is supposed to be more flexible than the old and enables banks to lend money to busines users where there is a lack of tangible security. however it doesnt make a bad deal good and the banks will only advance if the deal ticks all the right boxes. To date only two banks are responsible for 90% of the lending. XL Business Finance can provide a free asessment of your eligibility for a loan under the scheme.

Invoice Factoring (1)

April 6th, 2009

Invoice factoring or account receivable factoring still continues to be very bouyant  in the finance market. Not all factoring and invoice discounting comapnies are the same. All have slightly differing lending criteria  and many add value in different key areas. A good independent finance broker will ensure the particular need of your business is matched with the most appropraite funder.

Are the banks putting pressure on you due to the Credit Crunch

March 24th, 2009

Running a busines is a challenge at the best of times and keeping cash flowing and paying suppliers and staff is a constant juggling act. This has never been more relevant than in the current economic climate where raw materials , energy and fuel costs and a squeeze on credit are putting pressure on business owners.

XL Business Finance has access to a number of funders who can provide you with flexible funding solutions that can release cash tied up in your company and releive some of the pressure you face every day in business.

refinancing existing machinery

invoice discounting

factoring

payroll finance

Bad Debt Protection

March 16th, 2009

Non Recourse Factoring provides a certain amount of bad debt protection. In addition to providing cash up 85% of the customers unpaid invoices, bad debt protection is provided against unpaid invoices. However there are two very different schemes run by bank owned factoring and independent factoring companies. Banks can provided blanket cover with their bank owned innsurance scheme. Independents provide insurance offered by 3rd party companies. This is usually provided at a cheaper rate than the customer would get if they went direct to the insurance company themselves. Both schemes have their pros and cons.

The Enterprise Finance Guarantee (EFG)

March 13th, 2009

The Enterprise Finance Guarante (EFG) replaced the Small Firms Loan Guarantee Scheme (SFLG)  in January 2009. The new scheme makes loans available up to £1.0m and in theory is more flexible than the old scheme. A 30% contribution is required from the customer and the loan is suitable for businesses which have been declined due to lack of security, previously been ineligble for SFLG or have been unable to get finace via other types of products.

Factoring

March 2nd, 2009

Factoring provides a business cash against unpaid invoices. As credit control is also built into the cost of the facility it is not always easy to compare apples with apples. A high street bank or factoring company will only telephone the top few customers to chase the debt. Smaller independent finance companies more often than not add greater valuer by providing a more extensive credit control facility. Threfore  the chepest is not always the best. In addition confidential factoring provides all the benefits of factoring but in a confidential manner

Cash Flow Finance

February 27th, 2009

Cash Flow Finance is the most raidly expanding form of finance and their are many funders positively active even in the current market. Whether it is factoring, invoice discounting or payroll finance these different  finance companies all have different areas of expertise. For example international trade finance is only undertaken well by 3 or 4  companies. Like wise stocking finance is provided by only 2/3 companies. Choosing the right company for your business can be made easier by speaking to a good independent broker.

Confidential Factoring

February 16th, 2009

It goes without saying that  invoice discounting is the preferred option when it comes  to a confidential cash flow finance facility. Although factoring traditionally provides credit control, it  is provided on a disclosed basis therefore your customers are aware of your facility. Invoice discounting is perceived as a bigger risk therefore businesses must normaly be well established and profitable to be considred for such a facility. More worryingly in the current credit crunch/recession banks are transferring customers from invoice discounting to factoring facilities or asking them to move away from the bank completely. It is very difficult to get get invoice discounting for businessses which maybe are experiencing tough trading conditions. However confidential factoring may be a half way house. A dedicated credit controller chases the debt in the name of the client and monies are paid to a trust account. This is a very specilaist area and not all finance companies can offer this facility

Refinancing existing machinery

February 9th, 2009

Refinancing existing machinery has got to be the most enquired about business finance product currrently available. As businesses are having their credit lines and overdraft squeezed by the high street banks they are looking for alternative forms of finance. The best sectors are printing, engineering, haulage , recycling and any other sector which uses heavy plant machinery and equipment. The process is relatively straight forward. The finance company obtains a valuation for refinancing purposes. This will be a forced sale value usually obtained from a professional valuer. Subject to status the finance company wil advance 60-80% of the forced sale value. It will be necessary  to obtain a debenture waiver, landlords waiver and proof of title before payment can be made. Although this is a very specilaist markert not all asset finance companies are the same and all have their little quirks in terms of what sectors they like and how they percieve the value of certain assets. XL Business Finabnce has the expertise and knowledge to obtain the best deal in terms of funds out and overall structure!

Payroll Finance

February 3rd, 2009

At .85% per month Payroll Finance isn’t the cheapest form of funding however when you consider that there are no personal guarantees required and that the payroll funder is classed as a trade creditor it is proving a viable alternative to a bank overdraft. There is no guarantee that banks are even willing to grant overdrafts and they more often than not require additional and onerous security.  Payroll finance provides up to two months of the gross monthly payroll on a revolving credit facility. It can sit alongside traditional cash flow facilities such as factoring or invoice discounting. Surely less reliance on the bank has got to be a good thing in these difficult times!

 
 
 

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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