Asset finance leasing - XL Business finance

Why use a factoring broker!

April 13th, 2011

XL Business finance has been trading for over 10 years and during that time we have developed an in depth knowledge of the UK factoring market. We know at lease 20 different factoring companies each of which has their own unique selling point.

During this time we have placed deals with just over 10 different factoring companies each of which could offer a little something which their competitors couldn’t. for a example a southern based factoring company can be very different from one in the north. Not that there is a north south divide but more because we think you should be local to your particular factoring company.,

 

Asset For Disposal

April 12th, 2011

From time to time XL Business Finance has access to assets that have been on Hire purchase or Finance Lease facilities and have been repossessed. Whilst high street finance companies tend to send most of their equipment to auction the smaller asset based lenders will try and find end users. There are often commercial vehicles, coaches light commercials engineering equipment and printing equipment that are available on favourable terms. Whilst these lenders try not to give the repossessions away for nothing they often can provide favourable finance terms especially if the business doesn’t meet normal lending criteria. If your business is looking for a particular piece of kit it is worth letting us know what it is and we will keep an eye out

 

Need 100% Export Finance?

April 11th, 2011

A business manufacturing prepaid telephone cards recently approached XL Business Finance needing funding for 3 single debtors all of which were based on the continent. Having been declined finance from their own high street bank they were delighted to find that a factoring and export finance facility was available via a specialist factoring company.

Although the provider was a substantial financial institution and one of Europe’s biggest banks this particular factoring company were not interested in taking on the clearing banking or doing the commercial mortgage. Therefore the business was able to carry on using their existing finance company for clearing which kept the overall banking relationship on an even keel.

 

Import Finance

April 10th, 2011

XL Business Finance has recently helped a business import wine from France. Although the business had recently been formed and was therefore unable to obtain funding from a high street bank, the business had  a large confirmed order from a well known supermarket. The import finance company was able to provide a finance facility on the back of the confirmed order. 100% funding was provided to the customer to import the wineand upon delivery to the supermarket a factoring facility provided an additional 90 day funding. A complete funding solution was provided from start to finish. Stand alone import finance is also available but it certainly helps when it comes to obtaining funding if you either have confirmed orders or a track record

International Trade Finance Explained

April 9th, 2011

Trade finance can cover business exporting goods  and services ( export finance) or it can cover business importing goods and services ( import finance). Whilst certain high street banks can be very good at providing import and export facilities there are alternatives that can help businesses that are not eligible for bank funding for whatever reason. Again with any type of funding it is possible to obtain alternative views from specialist and independent trade finance company that can provide viable, flexible and competitive alternative to the banks. It is quite often possible to obtain a higher level of funding due to their expertise in particular market.

Is it getting easier to obtain business finance?

April 8th, 2011

In our opinion  obtaining business finance is still not getting any easier. Banks in particular are dammed if they do and dammed if they don’t. Onone hand we can proportion some of the blame to the banks for their cavalier lending policy over the years. However don’t forget that the greed of the consumer and lack of regulation from the government is partly to blame. On the other hand the banks have crawled into their shells mainly through lack of availability of cash but also because the quality of the applications they are seeing probably doesn’t meet their lending criteria. Admittedly the lending criteria has probably tightened but who came blame the banks when most of the UK’s SME businesses appear to be on a knife edge.

The good news is that their there are plenty of independent business finance insitutions coveing invoice discounting , factoring , commercials mortgages, trade finance and asset based lending providing viable and accessible alternatives to the high street banks

Invoice Discounting and bad debt protection

April 6th, 2011

It is commonly thought that bad debt protection or credit insurance can only be provided by the the incumbent invoice discounting or factoring company. It is a little known fact that credit insurance can be provided by an independent third party.

Often the bolt on products provided by banks and high street factoring and invoice discounting companies can be expensive and provide inferior cover. An independent can often provided greater levels of cover for the same customers , at a lower cost and with more protection. As far as we are aware there is only one or two high street finance companies that provide bad debt protection in the event of a protracted claim. Most high street funders only pay out in the event of insolvency which is in contrast to most independent insurance companies that as a matter of course provide cover in the event of a protracted dispute. Worth comparing then

Factoring for a new start business

April 5th, 2011

In theory obtaining a factoring facility for a new start business should be a relatively easy process. However we would advise that you consider a specialist factoring company that isn’t necessarily attached to a high street bank. Most finance companies will offer a facility providing that your debtors are of a decent nature. If you are starting off we only one or two customers then it is important that you obtain credit insurance. If your one and only customer were to go bust this would have disastrous consequences for your business and will potentially leave you personally exposed as you will have been asked to provide personal guarantees.

Obtaining the cheapest leasing and hire purchase rates

April 4th, 2011

Obtaining the cheapest leasing and hire purchase  rates depends not only depends on the strength of the covenant but also on the quality of the information provided. As with any transaction the easier you make it for an underwriter to understand the proposition the more chance you have getting a deal agreed in the first place and  therefore the better the chance of getting a decent rate.

Therefore with any transaction a full set of audited accounts should be provided, most recent mangement accountss, 3 months bank statrements, details of any finance agreements coming to the end of the agreement and a clear rational will also help

Beware of refactoring charges

April 3rd, 2011

The most common recourse period offered by a factoring company is 90 days. If at the end of 90 days and your customer hasn’t paid their invoice many factoring companies charge a refactoring charge which can be anything from 0 .25% to 2% of the outstanding invoice. Ouch!  Most factoring companies will not even mention this but leave it the small print. Call me cynical but there seems to be an incentive not to collect your invoices in time. If you are switching to factoring make sure that you choose business which as a good reputation and has the ability to collect payments quickly and efficiently. A tip small independents tend to be better at this than high street banks.

 
 
 

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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