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Cashflow problems?

Thursday, January 13th, 2011

Just over a week into the new year we have already had several enquiries from businesses having cash flow difficulties following the Christmas break. The first enquiry was for a printing business looking to refinance existing machinery in order to reduce the monthly payment.

In addition the business was applying to its bank for EFG funding of £40k. In our opinion a business that has had some trading difficulties is unlikely to be eligible for bank support even with the banking of the EFG scheme. However the customer didn’t realise that not only could we reschedule the repayments on his main press but we can also release any additional equity. And guess what based on the current trade valuation we can refinance the press, release an additional £50k and provide a monthly repayment no more than he is paying at the moment. Happy days. Well until the cash runs out.

The second enquiry we had was for a timber business importing wood from Eastern Europe. The business until recent years had been fully supported by a high street bank providing a small overdraft and an import finance facility. The business being under pressure from the bank to reduce its exposure came to us for alternative funding arrangements. We were able to introduce the business to an independent trade finance company and as yet we are still awaiting the outcome. Whilst alternative funding is never a guarantee there are alternatives to the banks and it is just a case of knowing who does what!

 
 
 

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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