There are a number of schemes available to UK businesses during this time of uncertainty.
Archive for the ‘Cash flow finance’ Category
GOVERNMENT SUPPORT FOR BUSINESS
Wednesday, April 1st, 2020£15 Million secured for UK Businesses
Friday, August 31st, 2018Small businesses turned down for loans from the UK’s high-street banks have received over £15 million of funding thanks to a government matchmaking scheme.
Over the past 12 months, 670 businesses have raised over £12 million of funding through the Bank Referral Scheme, four times what was raised in the previous year. Since it was introduced in November 2016, more than £15 million has been sourced for businesses across the country.
The Bank Referral Scheme requires Britain’s biggest banks to pass on the details of small businesses they have turned down for loans to online credit brokers. The brokers then help those businesses to source funding from alternative, and often smaller, lenders.
Rejected businesses are now automatically offered the opportunity to be referred to three online credit brokers: Alternative Business Funding, Funding Options and Funding Xchange. Each platform provides access to a range of lenders and products, including business loans, revolving credit, asset finance and invoice finance. Loans resulting from the scheme ranged from £100 to £1.3 million and the average size of a loan secured was £17,285.
Revolving Credit Facilities
Friday, August 31st, 2018Download our Guide to Revolving Credit– a facility that allows you unlock cash tied up in unpaid invoices, stock and/or work in progress (WIP). The facility is completely independent from your existing business banking with limits of up to £3 million.
It works much like an overdraft: businesses receive a limit and they can draw down funds and make repayments as often as they like in a given month. If you don’t use the facility there are no charges so well worth a further look. We manage the application process on your behalf and decisions are made quickly.
Click Here to download our guide and contact us to discuss your funding requirements.
Fancy a £5,000 boost to grow your business?
Wednesday, June 13th, 2018The Small Business Grants initiative from SmallBusiness.co.uk is a free-to-enter monthly competition that gives small businesses a chance to win a £5,000 grant to invest in their company’s growth. This is a private business grant and does not have to be paid back.
Eligible businesses can apply for FREE via a simple Grant Application form. Every month, a shortlist of leading entries will be sent to a panel of independent judges who will decide on the winner, considering factors such as turnover growth, innovation, aspiration, key projects completed, contracts won and partnerships forged.
To apply, click here
Hundreds of Grants for UK Businesses
Thursday, February 15th, 2018Local Government departments and councils who have regeneration targets often meet these goals by providing grants to businesses for specific projects. The project will tackle the issue (for instance: reducing unemployment or filling empty shops) by rewarding the business in the form of a grant to employ staff or refurbish shop premises.
Although this ‘free money’ is available – it is rarely promoted because councils do not have the capacity to cope with the high demand. Therefore eligible businesses often miss out on this funding which has the opportunity to be influential to the success of their businesses. We are experts at both searching for and applying for grants. Some of the funding currently available includes:
• £10,000 for businesses who develop digital innovation
• An award for businesses who improve communities in Greater London
• £100,000 of branding and marketing support for food businesses
• £20,000 for young entrepreneurs to develop new ideas
• Up to £50,000 for Scottish businesses that promote workplace equality
• Up to £12,000 for farmers to buy new equipment
• Up to £250,000 for businesses in Leeds for capital investment
• 21 different funding programmes for businesses in the Construction industry
There are many more grants, awards and training programmes across the UK. Contact us today to find out if there are any relevant schemes available for your organisation.
Scale-up Businesses struggle to find funding
Monday, January 29th, 2018A scale-up business is recognised as a young organisation with at least 10 employees which grows by an average of 20% each year. Scale-ups are of huge importance to the UK economy providing jobs, inward investment and innovation.
However, scale-up businesses often find it difficult to source finance from mainstream funders due to a lack of trading history, asset value or limited management experience.
Grants and regional funding options exist, but many are for very early-stage development rather than growth. Bank Loans are an option for companies with solid cash flow that can support the interest payments. However, new global capital regulations designed to make banking more stable have made it harder for banks to offer large overdrafts, and so alternative options are often required by businesses looking to raise finance.
Invoice finance is a popular way for scale-up business-to-business (B2B) firms to unlock vital working capital as it grows with your business. Working capital finance options for high-growth business-to-consumer (B2C) firms are less obvious. However, a relatively new type of lender is emerging offering merchant cash advances where businesses repay a fixed percentage of revenues.
Many crowdfunding platforms exist, including equity and non-equity options. When it comes to investing in new equipment, there are plenty of options available. Asset finance, otherwise known as asset leasing or lease rental, has been around for many years and for good reason, but not everyone is aware of how it can benefit them.
Asset leasing is a tax-efficient and flexible way to purchase the equipment you need without compromising your cash flow, and is suitable for all industry sectors and any size of business. Terms are available from one to five years with only a minimal deposit required in most cases.
Ultimately, there’s no easy answer for financing a scale-up and businesses may need to share the risk and look at numerous options. It does depend on your approach to risk, your attitude to giving away part of business, and your company’s ability to finance a debt.
To see how we can help you grow your business by providing funding options to suit your needs, contact XL Business Finance today for an initial discussion.
Manchester – 0161 980 0577
London – 020 3301 4540
xlbusinessfinance.co.uk
Confidential Factoring organised for sub contractor
Monday, July 1st, 2013XL Business Finance has recently sourced a confidential factoring facility to a mechanical and electrical sub contractor.
The business had secured new contracts and the next 12 months forecasts suggested an increase in turnover to £3m up from £2m. Due to the highly contractual nature of the debt the business could not go to their bank for an increase in overdraft and they were also told factoring or invoice discounting was not an option. Currently there are at least 5 independent factoring companies providing contract finance and all provide a slightly different take on the facility.
XL Business Finance understands this market inside out and for any business requiring finance against applications rather than invoices we can help. Contact us today Manchester, 0161 980 0577, London 020 3301 4540
Invoice Finance Facility Secured for multi-million pound enginering co
Tuesday, October 23rd, 2012XL Business Finance is delighted to have negotiated and secured a new and flexible invoice finance deal for a multi million pound north west based engineering company. Having 3 businesses within the group, multi currency accounts and a high level of export debt this deal was not going to be be for every finance company. Whilst the business was profitable an erratic trading performance over the last few years prevented their current high street bank from funding to appropriate levels. The good news was that a specialist invoice finance company was able to provide an increased £2.0m facility, funding at a higher prepayment, full export funding and cheaper credit insurance. Of the dozens of invoice discounting and factoring companies operating out of the UK only two or three are capable of transacting such a deal and XL Business Finance was able to use its experience and expertise within the industry to help the customer find the right funding solution.
Confidential Factoring
Monday, October 22nd, 2012Need working capital but dont want your customers knowing that you are factoring? Confidential factoring provides the best of both worlds. For businesses which are not eligible for full undisclosed invoice discounting but need some form of credit control confidential factoring could provide the perfect funding solution. The finance company will provide a dedicated credit controller phoning in your company name. This provides the funder more comfort and control and will enable them to provide the confidential facility that you require that otherwise may not have been available. XL Business Finance has been providing factoring advise and solutions for over 10 years. Call Mark Redman on 07748 635206 to find out how we can help your business.
Directors Liability for unpaid PAYE/NIC
Thursday, September 6th, 2012Directors of companies that use HMRC as one of their bankers should take note of a recent tribunal known as ” Roberts”, about their potential personal liability for unpaid PAYE /NIC contributions
In short the finance director was served with a personal liability notice for PAYE and NIC which were deducted from wages but not paid. More details available if required. This need not happen with the correct advice and funding possibilities. There are many alternative business finance to bank funding such as flexible invoice finance, EFG funding asset refinance and sale and lease back of intangible assets using directors pension pots.
XL Business Finance has been providing alternative funding solutions for over 12 years
