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Posts Tagged ‘business finance’

Leasing Printing Machinery

Saturday, January 16th, 2010

As we know printing equipment can be categorised into two types. Digital high tech equipment and traditional equipment such as litho presses. There are a number of specialist print finance companies currently lending money and you wold think it would be easy obtaining finance as they know the market. However it is not as simple as that because different finance companies have differing views of  the suitability of  digital and non digital as security for a finance lease oir a hire purchase agreement. XL Business Finance has an area of expertise in the print sector and has been helping many printing businesses arrange finance for over ten years.

For example it is unlikely you will get a print finance specialist to finance an expensive  digital printer. A print finance company is more interested in the residual value of the equipment and their exit route if they  such a machine came back to them in a distress situation. Print finance companies know the litho market and a certain degree the flexo market very well and as such tend to stick to financing these sorts of machines.

It is therefore more likely you will get finance for a digital piece of kit or a non ltho piece of kit from a traditional balance sheet finance company. So long as we can evidence serviceability, there is no adverse information and your business is profitable than you have a good chance of geting finance approved.

The problem is when a business that has been struggling wishes to buy digital kit which is perceived as having very little security. There isn’t enough value in the kit to get the print finance companies interested and the balance sheet isn strong enough to justify an advance from a high street bank owned finance company. Potentially the only way is to provide additional security by taking a charge over existing kit or even property.

Business Finance from asset based lenders

Saturday, January 9th, 2010

Business Finance covers a great number  of financial products many of which can be provided by independent finance companies as opposed to bank based lending. We would suggest that organising business finance has a great deal of benefits when using independentbased lenders. In the current economic climate it is advisable to spread as many types of lending with as many different lenders as possible. Never has it been more prudent not to have all your eggs in one basket. Fundng from asset based lenders is still relatively abundant therefore in theory it should be easier to be less reliant of the banks.

At XL Business Finance we would recommended that if possible you should only use your bank as a clearing facility. An invoice discounting or factoring facility is preferable to a bank overdraft. Invoice finance grows with the business  whereas a overdraft which is repayable on demand will often be fixed at a set amount which depends on the level of security available. An overdraft amount is nearly always never enough.

Also there is absolutely no reason why you should need to have a commercial mortgage with your own bank. There are a number of specialist commercial mortgage institutions offering excellent deals. keep your commercial mortgage separate from your own bank to prevent the bank having too much control, on your businesses finances.

Equipment finance by way of hire purchase and leasing can easily be arranged via third party leasing companies. Again using a different finance company will prevent having too many eggs in one basket.

XL Business Finance has been helping many businesses for over 10 years to obtain the most flexible and competitive funding available in the market place. We understand how to structure a proposal and what information the finance companies require resulting in a very high conversion of our applications.

Obtaining Business Finance in the New Year

Monday, January 4th, 2010

Happy New Year to all our customers and potential new customers. 2010 is undoubtedly going to be an interesting year. On the one hand we started to see a recovery towards the back end of 2009. The number of enquiries we were getting from businesses requiring help with asset finance was definitely on the the up. From our point of view we were definitely starting to see the green shoots of recovery. On the other hand the government must seriously eat into the deficit created by quantitative easing. We are expecting an increase in taxes and massive cut in governmentspending. In our opinion the economy is still balancing on a cliff edge. So what does this mean in terms of obtaining credit.

In our opinion it will still be a very difficult year dealing with the banks and financial institutions. Unless there is a further injection of cash from somewhere it is simple economics of supply and demand. There is a shortage of cash in the market and the banks will continue to cherry pick the best deals. Most of the proposals we are seeing for hire purchase and finance  all have a story to tell. None of them are straight forward and over the last twelve months  most businesses have had a number of issues. Until we are completely out of the recession the banks and high street finance companies will still be very difficult to deal with.

The good news is that are still a number of independent finance companies able to offer finance for most eventualities. It is is just a case of knowing what which finance company will do what. XL Business Finance has over 10 years experience of helping businesses obtaining business finance for a variety of projects. We believe we can add value to the funding requirements of most business so give us a call today to find out hoe we can help you.

Happy New Year from XL Business Finance

Friday, January 1st, 2010

Unlikely anyone is reading the blog today especially when most people will be hung over in  some form or another. However we wanted to take the opportunity to wish all our customers all the very  best for 2010. Most of will be delighted that 2009 is behind us which can only be described as the worst year from a business point of view that any us can remember. Anyone who says that they have had a great year is lying. Most businesses have been treading water at best and the ones that have survived 2009 and can survive the continued turmoil in 2010 will undoubtedly be in a very strong position when things eventually start to pick up.

Although there were signs at the back of 2009 that business was starting to pick up 2009 has very much been a year of peaks and troughs and hopefully for your business the peaks have just about been better than the troughs. In our opinion the economy in its very fragile condition will bumble along during 2010 and hopefully we will see a big improvement during the latter part of the year. We expect the banks and high street finance companies to continue to be difficult and as such raising any kind of business finance via the high street will be extremely difficult.

On the up side there are plenty of privately owned finance companies looking for the right kind of deal. Whether it is a finance lease or a hire purchase facility required to help with your capital expenditure requirements or you are looking for a factoring or invoice discounting facility to release cash against your unpaid debtors there will be a finance company somewhere that will be willing and able to help most businesses and scenarios! XL Business Finance wishes every single business all the best in 2010. Lets hope its better than last year!!

Business Finance for new start businesses

Monday, December 7th, 2009

It is still incredibly difficult for a new start businesses to obtain any sort of  business finance via the high street banks. The good news is that there are still a number of independent finance companies willing to provide funding, however they will do so very much on their own terms. It is slightly easier to obtain cash flow funding in the form of factoring or invoice discounting. The independent finance companies tend to be more flexible than the high street banks but there are a number of instances when we would recommend the banks for this form of finance.

Enterprise Finance Guarantee Funding or (EFG Funding) probably isn’t available for new start businesses. This form of finance is only rally available for businesses who have  good trading history, are profitable have a project that is viable form a rational and cash floe point of view however there isn’t enough security to enable the banks to make an offer.

Asset finance is available for new start businesses however as a rule of thumb only £10k of finance will be available for each director so long as a personal guarantee is available, the directors have a clean personal credit history and also have a reasonable amount of equity in their properties. Any new start business wishing to purchase assets costing more than £10k face a slightly more uphill struggle. I will tell you how in Mondays blog.

I want to sell my business

Sunday, November 22nd, 2009

As a leading business finance provider XL Business Finance runs a database of  individuals and organisations  wishing to acquire businesses via amalgamation and acquisition. If you feel that the recession has taken its toll and you have been considering your long term goals and exit strategy XL Businesses Finance will be able to help. Through our extensive network of  professionals and existing client database we have been successful matching business buyers and sellers together.

Although the mergers and acquisitions market has not been as buoyant as it has been there are still organisations wishing to acquire similar businesses. Some of these organisations  will to use their own cash to fund the acquisitions however others will use the assets within the business to provide the funding.

More often than not the key personnel are required to run the business on an earn out therefore providing the opportunities for the previous owners to keep involved within the business. Most acquisitions and mergers will provide some economies of scale within the market sector resulting in cost savings and increased sales opportunities. We have recently being doing work with a group of engineering companies. Previously they operated as 6 individual business and although only a small area of business overlapped they would definitely have seen each other as a threat and a competitor. They are now all working together passing non core business to each other and as a result turnover across the group is increasing. Safety in numbers.

 
 
 

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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