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Posts Tagged ‘Factoring’

Why do I need bad debt protection?

Sunday, April 17th, 2011

Bad debt protection can be provided on a stand alone basis or in conjunction with a factoring or invoice discounting facility. When provided with factoring or invoice discounting it is known as a non recourse facility. Bad debt protection can be provided by an independent credit insurance company or it can be provided by your bank or factoring or invoice discounting company. The idea is that you are insured if one of customers go bust. However not all insurance is the same and it is probably worth shopping around as their as some big differences between the banks, factoring companies and independent providers.

 

 

Why use a factoring broker!

Wednesday, 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.,

 

Need 100% Export Finance?

Monday, 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.

 

Invoice Discounting and bad debt protection

Wednesday, 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

Tuesday, 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.

Beware of refactoring charges

Sunday, 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.

Replacing an overdraft with invoice finance

Saturday, 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.

Factoring Contractual Debt

Wednesday, 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.

Factoring export Debt

Thursday, 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.

Does Your Business have the XL Factor?

Monday, 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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