It appears businesses are increasingly 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.
Archive for January, 2009
Stocking Finance
Monday, January 26th, 2009Euro Deals
Monday, January 12th, 2009It may be worth mentioning it is possible to write larger hire purchase and leasing deals in Euros. In view of the very weak pound a business may be better off drawing the funds in Euros and paying the finance company in Euros. This will only work if its operates a euro account which will therefore eradicate any exchange rate fluctuations. Obviously any business equipment finance facility is subject to credit approval!
