Cash Flow Finance covers so many financial products and provides the ability for the business to raise additional working capital. Factoring and invoice discounting are the two obvious and well known products however stocking finance, trade finance, payroll finance and even refinancing existing eequipment can provide much needed working capital.
Stocking finance is usually bolted into the back of an invoice discounting facility and can provide much needed additional cash. Trade finance is offered by most high street banks however some of the larger independents are pretty good at this facility. Trade finance provides a customer with working capital against pre ordered goods enabling them to purchase stock from their supplier. Trade finance can either be UK based or if a customer is importing goods then we are looking at International Trade Finance. Simple!
Currently no one is offering payroll finance however it is rumoured that a new funder will soon be entering the market so watch this space.
Refinancing existing eeequipment is increasing becoming more difficult as residuals values of equipment take a pounding in the current recession. However if there is equity in the equipment or machinery this can be released to provide much needed working capital. The equipment or machinery that is to be refinanced need not be free of finance as it may be possible to repay the existing funder, reduce the monthly payment and also release some cash back into the business. Happy days!
Tags: cash flow finance, trade finance
