Asset finance leasing - XL Business finance

Replacing an overdraft with invoice finance

April 2nd, 2011

We are still seeing so many businesses struggling for cash flow with inadequate working capital facilities and replacing their bank overdrafts with invoice finance. Bank overdrafts are not designed to grow as a business expands and believe it or not there are many businesses out there that seemed to have turned the corner. This seems very much to be the case in the manufacturing and engineering sector which seems to be very very buoyant at the moment. Invoice finance by either factoring or invoice discounting can release cash against 85% of a businesses unpaid invoices. In many instances this can create cash far in excess of any bank overdraft facility is capable of doing.

XL Business Finance sells to Middle Eastern investors for £300M

April 1st, 2011

Middle Eastern investors have reportedly purchased XL Business Finance for £300m! Due to the dwindling oil resources in the middle east a consortium of investors feel the future is with asset based lending in the UK and have teamed up with XL Business Finance as their chosen funding partner. A signing on fee of a cool £50m is reported to have been negotiated for XL Business Finance founder and owner Mark Redman. A not such a daft fee considering the fee paid recently by Chelsea Football Club for Torress. At the time of press release Mark Redman was unavailable for comment as he has apparently done one to some boiling hot holiday destination  and never to return. Dream on!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Confidential Factoring Explained

March 31st, 2011

The previous blog mentioned a business that required invoice financing for contractual debt. Where there is a certain amount of contractual debt the business is deemed to be more risky and therefore the finance company will require a more control over the facility. Invoice discounting is risk because the finance company has no control over the invoicing and factoring is not always preferable for many business because they would prefer a confidential facility. Confidential factoring is a half way house. A dedicated credit controller chases your customers in you name with a dedicated telephone number. Whilst it is a compromise it can be a costly funding arrangement however it does give some businesses an option which they would oif otherwise had.

Factoring Contractual Debt

March 30th, 2011

99% of UK based independent and bank based factoring companies will run a mile when they see that a business supplier terms and conditions are deemed to be slightly contractual. Unless you operate on a sale and forget basis it is worth  ironing out these issues from the start. If a supplier agreement is place that could be construed as contractual it is always worth getting your supplier terms checked out. XL Business Finance recently helped a very profitable business replace a bank overdraft with an invoice discounting facility. Although the business was actually getting 4 quotes only one finance company was able to fund contractual debt allot of time would have been saved at the start of the process if this had been know.

Bank Loan or Hire Purchase

March 29th, 2011

It is becoming increasingly common for high street banks not to offer hire purchase or finance lease facilities especially for transactions sub £50k and even sub £200k with one bank. Although your bank may offer funding  for purchasing plant or machinery they are increasingly doing so by term loans. These loans are not necessarily secured against the assets being purchased but are agreed based on the trading performance of the business and security such as land already being in place. Although you may get a slightly cheaper rate than by going to an independent asset finance broker you run the possibility of tying up future lines and overexposing your business too much with one financial institution. If you can do we would recommended spreading the risk about!

Will my bank give me the best asset finance deal?

March 28th, 2011

Other than a businesses own bank there are still only a few independent asset finance companies offering hire purchase and finance lease facilities. And depending upon which bank you are with you might not get offered asset finance at all. If a bank wants to deal with you then you will get some of the best deals possible. However do you really want to tie up valuable banking lines which may restrict your future ability to obtain funding. If you can get funding via a third party funder it is always advisable to spread it around a bit. You may have to jump through a few more hoops but it will certainly be worth it!

Factoring export Debt

March 24th, 2011

Factoring export debt has always been difficult for many finance companies. The good news is that there are one or two finance companies that can provide specialist expertise in this area. If you are exporting to Europe than there are several specialist companies that can assist. If you are exporting to the rest of the world then things are slightly more complicated. However providing you can obtain credit insurance in that particular country there are factoring companies that will provide funding just about to anywhere in the world. XL Business Finance has been helping many such companies choose the right funding partner in exactly these circumstances.

Asset Finance and CCJs

March 23rd, 2011

The fact that a business has CCJs doesn’t necessarily prevent it from obtaining asset finance, however it certainly makes it more difficult. Most high street asset finance companies such as ING Lease will not touch a business with a CCJ. XL Business Finance recognises that not all CCJs are the fault of the directors.

We are therfore regularly providing hire purchase and finance lease facilities for businesses that have CCJ registered against the business. We recognise that they picked up due to disputes with suppliers or over zealous creditors. as long as there is a credible reason then it is certainly possible to help.

How to value equipment for refinancing purposes

March 22nd, 2011

Valuations for refinancing of plant and machinery can vary vastly from customers own valuations  and expectations. This is why.  Refinance of assets is provided primarily by asset based lenders. Their primary concern is with the value of the kit and their exit route. They are not balance sheet lenders and whilst they will require evidence of serviceability the strength of your accounts is not their main concern.

In the event of the finance company having to take the equipment back they want to know that they can quickly sell the equipment within a relatively short time frame of usually 3 months. And what someone will pay for machinery in a forced sale situation can be a million miles apart as to what you may have to pay for the same piece of kit from a supplier. Unfortunately some directors suffer from owneritus being the condition of thinking their equipment is worth far more than it actually is

Does Your Business have the XL Factor?

March 21st, 2011

Does your business have the XL Factor.  XL Business Finance has been helping Managing Directors and Finance Directors put the X Factor back into their business. Whether it is factoring , invoice discounting , asset finance or refinance we are fast becoming one of the UKs leading and most respected independent finance companies.

In a time when it is very difficult to obtain funding via more tradition banking facilities we go the extra mile to help you find the right funding solution. Whether you are a blue chip company requiring the best interest market or a or a company requiring funding out of an administration we provide by far and away so many options than a high street bank. Give us a call today to see how we can the XL Factor into your business!

 
 
 

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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