Archive for the ‘Case Studies’ Category
Wednesday, May 29th, 2013
Providing an invoice is no more than 3 months old it is possible to finance recently purchased assets at prime rates via a standard hire purchase agreement . This was the case for a packaging business that purchased two finishing machines at a total of £5ok out of working capital. In hindsight due to cash flow pressure the kit should have been financed at the time of purchase from the supplier. XL Business Finance organised a retrospective hire purchase agreement with a prime funder at prime rates even though the kit had been invoiced and paid for. It is important to do this within 3 months of original purchase as specialist refinance companies will need to be considered.
Tags: hire purchase, sale and HP back
Posted in Asset Finance, Business finance | Comments Off on Sale and hire purchase back
Tuesday, May 28th, 2013
If you have confirmed purchase orders it may be possible to obtain finance via supply chain finance as was the case for a dried fruit exporter. XL Business Finance was recently introduced to a business via its bank that had won a substantial contract with a US business supplying dried apple snacks. The requirement for 100% cash covered letters of credit was unworkable and impossible for the client to finance. XL Business Finance was able to arrange e a $2m solution to procure apples and pay the factory. The deal was secured on credit insured payments from the US buyer. Supply chain finance can either work on a stand alone basis or in conjunction with your existing bank facilities.
Tags: business finance, supply chain finance, trade finance
Posted in Business finance, Trade Finance | Comments Off on Supply Chain Finance
Tuesday, October 30th, 2012
ING Lease (UK) limited , the UK’s biggest asset finance and leasing company, yesterday announced that as from the end of November they are withdrawing from the UK market. All deals must be completed from start to finish by the end of November. This will undoubtedly leave a big whole to fill as they advanced approximately £40m every month. There will obviously be consequences for UK businesses as the alternative finance companies tend to be more expensive and their underwriting requirements are more onerous. Thankfully XL Business Finance has access to alternative funding lines and we are well placed to find the next best solution.
Tags: Asset Finance, ING Lease, leasing
Posted in Asset Finance, General | No Comments »
Friday, August 3rd, 2012
With banks continuing to squeeze customers we believe XL Business Finance is well placed to relieve the pressure! Refinancing plant and machinery is one of our key services and areas of expertise. Currently this is being used to great effect in a number of sectors. Printing, engineering, transport and any other industry sectors that uses plant and machinery can benefit. We are convinced that many of our customers if asked , would benefit from a £25k, £50k, £100k, £250k or even more capital injection without having to go back to the bank cap in hand to their bank!
Tags: asset refinance, refinancing plant and machinery
Posted in Asset Finance, refinancing, Sale and leaseback | No Comments »
Tuesday, January 10th, 2012
Anyone involved in the instruction industry will know how difficult it is to obtain working capital facilities. Due to the contractual nature of invoicing and applications for payment traditional forms of invoice finance are not available. The good news is that there are two or three independent finance companies that can provide funding against contractual debt and application for payments.
Specialist invoice finance companies use their own QS’s to asses work and provide funding that traditionally isn’t available via the high street banks. Whilst prepayments might not be as high as traditional invoice finance and factoring facilities the ability to get 50 or 60% of outstanding payments provides vital working capital for many businesses. As with any form of business finance the finance companies in question are all very different animals and provide slightly different forms of funding. XL Business Finance with over 12 years of experience can help you with speaking to the right funder.
Tags: business finance, Construction Finance, invoie finance
Posted in Cash flow finance, Factoring, invoice discounting, Invoice Finance | No Comments »
Friday, January 6th, 2012
Until now stand alone asset refinance has only been available from specialist and traditional more expensive finance companies. However, a prime funder has now entered the market offering to refinance plant machinery and tangible assets providing it is for the right reason. Funds might be required for expansion, deposit on a new machine, an MBO or an MBI.
The balance sheet of the business must be reasonable and the business must have been trading for more than three years. Providing there is a strong rationale for the refinance and the equipment has good value we have a very good chance of obtaining some funding. Businesses which are struggling and need to refinance kit because they and are struggling to pay creditors may still be able to obtain funding but it will be via a very different type of lender.
Normally it is possible to provide an indication of what is available within 24 hours. All we need to get the ball rolling is a list of plant and machinery to include age make and model. We can then get a value of the kit for refinancing purposes which enables a quick assessment of the viability of the refinance. XL Business Finance is one of the Uks leading funders in asset finance and refinance and we have 15 years experience in doing such deals.
Tags: Asset Finance, asset refinance
Posted in Asset Finance, refinancing | No Comments »
Wednesday, November 2nd, 2011
Ever wished you had funded your cap expenditure requirements instead of paying cash. Did you know it is possible to organise retrospective hire purchase and finance lease deals within 3 months of purchase?
So many businesses come to us asking for additional working capital following cash purchases of plant and machinery. In today’s economic climate trading conditions can rapidly change and it makes prudent business sense to fund as much as possible. Cash is King as they say. Funding is available at decent rates, subject to credit of course and providing you meet the funders lending criteria. If the purchase is more than 3 months ago don’t worry, finance may still be available but it is a different type of funding. Asset refinance is provided by a number of specialist asset based lenders and it is an area that XL Business Finance has many years experience.
Tags: asset refinance, hire purchase, leasing
Posted in Asset Finance | No Comments »
Thursday, October 20th, 2011
Do you need assistance with finding a hire purchase or finance lease facilities for new or used capital expenditure projects? XL Business Finance has access to many specialist asset based lenders providing you with competitive deals many of which are not available via the high street banks.
Never has a good asset finance broker been able to add so much value to businesses in this difficult economic climate. There are many reasons why you should use a broker a few of which are provided below.
Many high street banks are only providing hire purchase and finance lease facilities for their own customers that meet a certain criteria. If your business is good enough to meet this criteria then great. However many are not. If you have a good business but perhaps are fully exposed with your existing bank or you would prefer not have all your eggs in one basket there are still a few prime lenders that deal purely with the broker market providing an alternative to the high street banks. These funders are happy to provide 3rd part hire purchase and finance lease deals which sit alongside your existing agreements.
If your business has however has had a number of issues an experienced asset finance broker will be able to package the deal in the best possible light from an underwriters perspective. This ensures that you have the best possible chance of success with the most appropriate finance company. There are still many smaller lessor known finance companies that provide funding for many different businesses assets and circumstances. It is simply a case of getting the correct information and making sure we are dealing with the most appropriate funder.
Tags: finance lease, hire purchase
Posted in Asset Finance | No Comments »
Tuesday, October 18th, 2011
Your goods are pre sold but you don’t have the working capital to purchase your goods in advance. XL Business Finance has over 10 years experience helping businesses with trade finance facilities and has a number of alternative solutions.
For one reason and another many businesses are struggling to obtain financial support from existing high street banks. This is never more true for businesses looking to import goods and products from abroad. The problem is that you have an order in the UK, your goods have been pre sold, however you don’t have the working capital to purchase the goods in advance. Whilst banks do a certain amount of trade finance it is usually for existing and well established customers with very strong and profitable balance sheets. Banks generally will not support businesses trading for less than 3 years and very rarely will help businesses with marginal credit.
The good news is that there are a number of independent trade finance companies that may be able to assist. It will certainly be easier if your goods have been pre sold as not only will the stand alone trade finance companies potentially help but also there are a number of factoring companies that also offer trade finance solutions. This is the preferred option for many businesses as a complete financial solution is provided form start to finish. A trade facility is provided for the business to import the goods and once an invoice has been raised in the UK upon delivery the trade finance facility is repaid via a factoring or invoice discounting facility. This factoring facility is repaid when the customer pays the invoice at a agreed future date, ie 30,60 or 90 days hence.
Tags: Factoring, trade finance
Posted in Factoring, Trade Finance | No Comments »
Wednesday, September 28th, 2011
The Bank of England’s recent Credit Conditions Survey found that default rates on loans in Q2 increased for small businesses. By acting now, an invoice finance provider can help your business to avoid becoming part of these statistics.
In addition to trying to win new business, companies are equally concerned about whether their existing customers can pay, and on what terms. Businesses often rely on loans and overdrafts to provide the capital they need; in recent years however, a variety of invoice finance options, such as factoring have helped SMEs to ease their funding gaps.
Not only do these arrangements have more flexibility than bank loans, but they are quicker and tailored to a company’s specific requirements. In both good and challenging markets, invoice finance can provide the flexibility and access to capital that a business needs to thrive and grow. The annual cost of a factoring facility starts as low as 1% of sales so it is a very cost effective option for business owners.
Tags: Factoring, invoice discounting, invoice finance
Posted in Factoring, invoice discounting, Invoice Finance | No Comments »
