Answering your business needs.
Looking for new business finance?
XL Business Finance has over 15 years experience in arranging new business finance. High street banks and finance companies to a certain extent can provide some funding but for new start business this can prove very difficult.
As we know unless a business has been trading for 3 years and they have a strong set of accounts, obtaining new business finance can be difficult. Some banks can help with the aid of the small firms loan guarantee scheme but the exercise can prove frustrating and for a lot, unfruitful.
Arranging hire purchase and leasing facilities is more often than not the most difficult. If a large amount of capital equipment is required a good asset financing broker will use more than one finance company to spread the risk. It is far easier to break the equipment down into more manageable chunks.
Cash flow finance is a very important part of new business finance. Factoring or invoice discounting will release 80-90% of a customer debtor book and provide much needed working capital.
As most businesses usually start life in rented or leased premises mortgages are not usually required, however with the right deposit (typically 30%) even these can be arranged.
Another important facility for a new start business is the government backed Small Firms Loan Guarantee Scheme. The SFLG can provide funding where there is not enough security in a deal. The SFLG can be used in conjunction with an asset finance facility or factoring or finance lease facility.
It is very important for a new business not to have all their eggs in one basket. In an ideal world you should use one bank for operating the day to day banking, another for asset finance, another for a mortgage and another for factoring or invoice discounting.
Many suppliers and manufacturers of capital equipment recognise that an independent broker can source the best possible deals for their client’s capital purchases.
More recently we have enabled a packing business to purchase £250k of laminating equipment. We have also helped a direct mail company purchase £125k of inserting equipment.
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