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Archive for the ‘Factoring’ Category

Scale-up Businesses struggle to find funding

Monday, January 29th, 2018

A 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, 2013

XL 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

Confidential Factoring

Monday, October 22nd, 2012

Need 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.

SMEs owed £33.6bn in late payments

Monday, February 6th, 2012

BACS, the payment company states that UK SMEs are  were owed £3bn in late payments which is a record since records began and 10% up from last year. Invoice finance and in particular factoring maybe a valuable tool in helping combat late payers. Not only will a full factoring service provide  cash against up paid invoices but it will also provide a full credit control facility leaving you free to go and run your business.

Small firms are owed an average of £39k and have to wait two months to be paid. The worst payers are large firms responsible for 48% of all late payments and the best payers are the government and not for profit organisations. If you feel that late payers are restricting your business factoring could be the perfect solution

 

Business Finance for the construction industry

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.

 

 

Selective Factoring

Monday, October 31st, 2011

It is now possible for business owners and managers to select which customers/transactions they would like to fund, collect or insure against potential bad debt!

Selective factoring offers customers the independence and flexibility that traditional factoring does not. The major benefit to businesses is that Selective factoring looks at individual transactions rather than the whole balance sheet allowing new start businesses to flourish and grow. For larger businesses  it allows them to factor individual invoices, where whole factoring is not wanted or needed. XL Business Finance has been helping businesses for over 10 years find the most appropriate business finance solutions.

 

Do you need trade finance?

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.

Avoid Becoming a Statistic

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.

Small Business Finance solutions

Friday, September 2nd, 2011

small business financeWe are still living in tough times financially throughout the UK with the emphasis falling on the small business. Finance can be hard to come by for the small business owner.

Often a small business must undertake a large capital equipment investment in order to grow. The balance sheet of the business is often not strong enough to justify a Hire Purchase or Finance Lease facility.

Without capital investment the business can not grow and become more profitable. A chicken and egg scenario.

Small Business Finance is an area in which XL Business Finance has a great deal of expertise. As an independent finance broker we understand the problems of small business finance, arranging equipment leasing and machinery finance for example.

At XL Business Finance we can provide small business finance for investments from as little as £1000. This could be useful for providing tax efficient leasing for office furniture, computer equipment and telephone systems for instance.

Do not think of us as a company who provides you with a one off service to get you up and running then disappears into the night. We work along side many clients for many years providing finance solutions such as factoring, debt factoring or factoring invoice discounting facility.

As an independent factoring broker XL Business Finance can provide you with the best Business finance to meet your specific requirements.

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