Archive for the ‘Factoring’ Category
Monday, June 20th, 2011
It makes sense to use a reputable and well established factoring broker. They will undoubtedly find you the best option which will be invaluable when it comes to choosing the right factoring and invoice discounting company for your business.
Unlike asset finance specialists where commission is added into the deal, the factoring broker is paid by the factoring or invoice discounting company from the income they would normally charge.
There are some important factors that need to be taken into account when choosing the right finance company. The biggest factor is to identify whether your business requires factoring or invoice discounting. Not all funders are equally specialised in factoring and invoice discounting. In fact some may just concentrate on one aspect of funding. The size and length your business has been trading needs also to be taken into consideration. High street banks are not always the most appropriate funder.
XL Business finance is one of the North of England’s premier independent finance companies with established links to many of the UK’s leading finance houses. Call us today, we are happy to discuss your specific situation.
Tags: factoring broker, invoice discounting
Posted in Business finance, Factoring, Factoring broker, invoice discounting, invoice factoring | No Comments »
Tuesday, May 17th, 2011
Selective factoring enables business owners and managers the opportunity to select which customers or transactions they would like to fund, collect and insure against a potential bad debt.
Selective factoring looks at the individual transaction rather than the whole balalnce sheet and debtor book. For smaller or new start business it enables a business to factor selective debts without the need to be tied into a 1 or 2 year contract. In difficult times this obviously helps keep costs down. For larger more established business selective factoring enables factoring of individual invoices where whole turnover factoring isnt needed or wanted.
Obvioulsy there are a number of financial institutions that offer selective factoring. We are able to find the best solution for your needs. Contact us today.
Tags: Factoring
Posted in Bad Debt protection / Non recourse, Business finance, Factoring, invoice factoring | No Comments »
Thursday, April 28th, 2011
Trade finance provides the ability for business to purchase goods and stock from within or ouside the UK. The goods can either be pre sold or unsold. Funding is available for just about any scenario however it does depend on a businesses actual circumstances. Just because a business has been declined by a high street bank it doesnt mean funding wont be available from an independent or specialist trade finance company.
For obvious reasons it is far easier to obtain funding for goods that have been pre sold and in certain circumstances 100% funding can be arranged. XL Business finance can help you obtain the appropriate funding.
Tags: Factoring, trade finance
Posted in Factoring, Trade Finance | No Comments »
Sunday, April 17th, 2011
Bad debt protection can be provided on a stand alone basis or in conjunction with a factoring or invoice discounting facility. When provided with factoring or invoice discounting it is known as a non recourse facility. Bad debt protection can be provided by an independent credit insurance company or it can be provided by your bank or factoring or invoice discounting company. The idea is that you are insured if one of customers go bust. However not all insurance is the same and it is probably worth shopping around as their as some big differences between the banks, factoring companies and independent providers.
Tags: bad debt protection, Factoring
Posted in Bad Debt protection / Non recourse, Factoring | No Comments »
Wednesday, April 13th, 2011
XL Business finance has been trading for over 10 years and during that time we have developed an in depth knowledge of the UK factoring market. We know at lease 20 different factoring companies each of which has their own unique selling point.
During this time we have placed deals with just over 10 different factoring companies each of which could offer a little something which their competitors couldn’t. for a example a southern based factoring company can be very different from one in the north. Not that there is a north south divide but more because we think you should be local to your particular factoring company.,
Tags: Factoring, factoring company
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Monday, April 11th, 2011
A business manufacturing prepaid telephone cards recently approached XL Business Finance needing funding for 3 single debtors all of which were based on the continent. Having been declined finance from their own high street bank they were delighted to find that a factoring and export finance facility was available via a specialist factoring company.
Although the provider was a substantial financial institution and one of Europe’s biggest banks this particular factoring company were not interested in taking on the clearing banking or doing the commercial mortgage. Therefore the business was able to carry on using their existing finance company for clearing which kept the overall banking relationship on an even keel.
Tags: export finance, Factoring
Posted in Factoring, Trade Finance, Uncategorized | No Comments »
Wednesday, April 6th, 2011
It is commonly thought that bad debt protection or credit insurance can only be provided by the the incumbent invoice discounting or factoring company. It is a little known fact that credit insurance can be provided by an independent third party.
Often the bolt on products provided by banks and high street factoring and invoice discounting companies can be expensive and provide inferior cover. An independent can often provided greater levels of cover for the same customers , at a lower cost and with more protection. As far as we are aware there is only one or two high street finance companies that provide bad debt protection in the event of a protracted claim. Most high street funders only pay out in the event of insolvency which is in contrast to most independent insurance companies that as a matter of course provide cover in the event of a protracted dispute. Worth comparing then
Tags: bad debt protection, Factoring
Posted in Bad Debt protection / Non recourse, Factoring, invoice discounting | No Comments »
Tuesday, April 5th, 2011
In theory obtaining a factoring facility for a new start business should be a relatively easy process. However we would advise that you consider a specialist factoring company that isn’t necessarily attached to a high street bank. Most finance companies will offer a facility providing that your debtors are of a decent nature. If you are starting off we only one or two customers then it is important that you obtain credit insurance. If your one and only customer were to go bust this would have disastrous consequences for your business and will potentially leave you personally exposed as you will have been asked to provide personal guarantees.
Tags: Factoring, factoring company
Posted in Factoring | No Comments »
Sunday, April 3rd, 2011
The most common recourse period offered by a factoring company is 90 days. If at the end of 90 days and your customer hasn’t paid their invoice many factoring companies charge a refactoring charge which can be anything from 0 .25% to 2% of the outstanding invoice. Ouch! Most factoring companies will not even mention this but leave it the small print. Call me cynical but there seems to be an incentive not to collect your invoices in time. If you are switching to factoring make sure that you choose business which as a good reputation and has the ability to collect payments quickly and efficiently. A tip small independents tend to be better at this than high street banks.
Tags: Factoring
Posted in Factoring | No Comments »
Saturday, April 2nd, 2011
We are still seeing so many businesses struggling for cash flow with inadequate working capital facilities and replacing their bank overdrafts with invoice finance. Bank overdrafts are not designed to grow as a business expands and believe it or not there are many businesses out there that seemed to have turned the corner. This seems very much to be the case in the manufacturing and engineering sector which seems to be very very buoyant at the moment. Invoice finance by either factoring or invoice discounting can release cash against 85% of a businesses unpaid invoices. In many instances this can create cash far in excess of any bank overdraft facility is capable of doing.
Tags: Factoring, invoice discounting, invoice finance
Posted in Factoring, invoice discounting, Invoice Finance | No Comments »
