Love or hate them pe organised administrations or prepacks are an inevitable part of the economy today. In theory they sound great. Dump the old company together with all the old debt ( mainly crown arrears) , buy the business back off the administrator and start a fresh with a new meaner and leaner phoenix company. It has been well documented that obtaining  cash flow finance such as factoring or invoice discounting can be relatively straight forward however it may not be so simple in transferring existing hie purchase and leasing facilities from the old co into the new co.

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Cash Flow Finance covers so many financial products and provides the ability for the business to raise additional working capital. Factoring and invoice discounting are the two obvious and well known products however stocking finance, trade finance, payroll finance and even refinancing existing eequipment can provide much needed working capital.

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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.

It appears businesses are increasinlg looking for additional means of funding working capital other than the their bank overdraft. Stocking finance is a viable addition to taditional cash flow finance facilities. Stocking finance is usually provided in conjunction with a factoring or invoice discounting facility. Not all factoring or invoice discounting companies povide a true stocking facility. All say they do but most only provide funds against stock to provide an over advance of equal to and no more than the total debtor book. Furthermore they wil reduce the advance over an agreed period back to the agreed payment of the debtor book. IE 85-90%. There are only a handful of true revolving stock facilities where an agreeed percentage of the stock is permanently advanced on a revolving credit basis. Remember this facility must be used in conjunction with the factoring or invoice discounting facility.