It appears that there are still one or two individuals looking for new business financing. I suppose this is not unexpected given the number of people being made redundant in the current climate.
Any new start business approaching their bank will need to produce business plans, cash flow forecasts and inside leg measurements. Their friendly business relationship manager fresh from university will suggest that they apply for EFG funding promise the earth , collect a load of information string the customer along for a couple of months and then after much persuading he will find out that they are unable to do the deal. No surprise there then!
AT XL Business Finance we take a more straight forward approach. We don’t necessarily require business plans and we can very quickly determine what level of funding will be obtainable. With the right information we can normally do his within a couple of days. In simple terms there are a number of ways a new business can be funded. If capital equipment plant and machinery is required asset finance in the current climate can be obtained at an amount equivalent to the forced sale value. Any shortfall can be topped up from personal means or by taking additional security such a second charge over a personal property. Banks will not automatically lend to a new business just because a second charge is available. The rest of the plan must tick all the right boxes A task in itself in the current financial predicament.
To assist with cashflow a factoring facility can be put in place. This will release 80% of unpaid invoices immediately providing much needed cashflow. It is amazing the number of accountants that don’t recommend factoring or invoice discounting thinking it is expensive and still product of last resort. Factoring charges start at a few hundred pounds a month and are a valuable tool for any new business.
Tags: Factoring, new business financing
