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Archive for September, 2021

Can secure more orders but need to hold more stock.

Monday, September 13th, 2021

A client that we have funded vehicles before approached us for a term loan to buy more stock.

They are a re seller of mattresses. They have an opportunity to supply a large chain hotel on a regular basis but have to hold more stock especially the more popular items.

Rather than a term loan that needs to be repaid and once spent, it is gone, we suggested a stock finance facility as they already hold a lot of stock.

We were able to secure a loan facility to borrow money against their stock and the more stock they held, the more they could borrow.

This worked out perfectly for them as it allowed them to build up the additional stock they needed and was secured against their existing stock.

Far better margins if we buy direct from abroad

Monday, September 13th, 2021

We have a client who is a re-seller in the plumbing sector.

For years they have bought goods from UK manufacturers but they have the option to buy the same goods from China for a far better price.

Currently their suppliers give them credit terms but buying in bulk from China, they would have to pay with the order.

The company already uses invoice finance and they simply do not have enough cashflow to do this. We introduced them to trade finance.

The trade finance company advances them the money to pay for the goods and then when the goods are sold to their business clients, the trade finance company also provide the invoice finance until the invoice is settled.

A complete solution from buying the goods to have their customers invoice settled in full.

Cashflow tight but don’t want invoice finance

Monday, September 13th, 2021

We had a client who had trade debtors but did not want to use an invoice finance company.

The main reason for this was that the business was very seasonal with peaks and troughs in quarterly turnover and they didn’t want to pay for invoice finance when cash flow was OK.

We introduced them to a specialist company that provides them with funds each time they need them (like a traditional bank overdraft).

They only pay interest on the money when they borrow it. This solution suited them perfectly.

Opportunity to buy land and build premises

Monday, September 13th, 2021

One of our clients needed to scale up their business premises and had been leasing for the last 5 years.

They wanted to invest in a property for their family business and saw an opportunity to buy land with planning permission to build a unit of 9,000 square feet which was ideal.

We were able to fund the purchase of the land with a term loan, which was secured on the land at very good rates, as there are some specialist lenders that have access to subsidised loans where they are used to create jobs.

We then used a similar, but different, company to provide bridging finance for the build of the new premises. Once the premises were completed, we then provided them with a commercial mortgage to repay both bridging finance loans.

Opportunity to buy premises from Landlord

Monday, September 13th, 2021

A regular client of ours had an opportunity to buy his factory premises from his landlord after renting them for many years.

The issue was he had to find a 30% deposit.  We were able to fund the whole purchase by providing a term loan as the deposit and a commercial mortgage for the balance.

Funding required to expand business

Monday, September 13th, 2021

A well established retail business had an opportunity to expand and purchase two new retail units.

These units required deposits, complete refurbishment and stock. In total nearly £300,000 was required.

Although a home owner with equity, the husband and wife team did not want to borrow money against their house and had no other assets (or so they thought).

However they both had pensions from previous employment and we were able to set up a facility with a specialist who enables people to borrow money from their own pension pot.

Adding to and replacing a haulage company’s fleet.

Monday, September 13th, 2021

A relatively new business was looking to upgrade it’s fleet of vehicles and adding to them after winning a large contract.

The contract would allow the business to more than double it’s turnover. The owner of the business was not a home owner and thought he would struggle.

We have a lot of experience in financing vehicles and equipment. We were able to finance all the new vehicles required and finance the replacement vehicles too. On top of that, deposits were required for each vehicle and we were able to refinance some of the older fleet to raise all the deposits for the new vehicles.

Problems with HMRC arrears

Monday, September 13th, 2021

This company approached us to initially provide an unsecured loan to repay some large HMRC arrears.

Once we identified how the arrears had built up, we were able to raise most the money required to pay off the arrears in full, but we advised this business to put a time to pay arrangement in place with HMRC through a specialist that we know well.

Once that was agreed, we put a finance facility in place to ensure that the arrears were repaid on time as well as the current commitments.

Buying a competitor

Monday, September 13th, 2021

An existing client of ours saw an opportunity to acquire a competitor where the owner wanted to retire.

XL Business Finance were able to use the assets from the existing business and the business to acquire to finance the full purchase of the business.

This was done through using one of the new challenging banks to provide most of the funds and as XL Business Finance also provide funds to finance and refinance, we were able to provide additional funds by refinancing some of the existing equipment.

Motivational Business Quotes

Monday, September 13th, 2021

We all need a bit of motivation at times in business, especially when things aren’t going quite as planned. Here are some of our favourite quotes:

  • A business has to be involving, it has to be fun, and it has to exercise your creative instincts. ~ Richard Branson
  • You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win. ~ Zig Ziglar
  • To be successful, you have to have your heart in your business, and your business in your heart. ~ Thomas Watson, Sr.
  • Success is walking from failure to failure with no loss of enthusiasm. ~ Winston Churchill
  • Things work out best for those who make the best of how things work out. ~ John Wooden
  • It does not matter how slowly you go, so long as you do not stop. ~ Confucius
  • You have to trust in something – your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life. ~ Steve Jobs
  • Quality means doing it right when no one is looking. ~Henry Ford
  • The essential question is not, “How busy are you?” but “What are you busy at?” ~ Oprah Winfrey
  • Take up one idea. Make that one idea your life – think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success. ~ Swami Vivekananda
  • The only place where success comes before work is in the dictionary. ~ Vidal Sassoon
  • The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it. ~ Debbi Fields
  • Have a very good reason for everything you do. ~ Laurence Olivier
  • Capital isn’t scarce; vision is. ~ Sam Walton

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