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Without a doubt there are still many options when it comes to obtaining finance against your unpaid debtor book. The ability to release up to 80% of your unpaid invoices can provide a financial life line for many businesses and can provide a viable alternative to any bank finance arrangement.  Invoice financing is still an area of finance where there still seems to be many finance companies in the market for writing new business however how do you know which provider is best for your particular requirements. XLBusiness Finance has been helping many businesses obtain the most appropriate factoring and invoice discounting products based on their own unique set of personal circumstances.

Depending on whether a business requires factoring or invoice discounting we may recommend a completely different finance company. Although invoice discounting is less about providing a service the cheapest is not always the best because credit limits on individual customers and the overall funding limit must be taken into consideration. Also a bank invoice discounting company may be providing the cheapest facility however the banks are not always the best choice if your business experiences any difficulties. Factoring on the other had is all about adding value in terms of providing a credit control and efficient collection service.  Banks quote cheap rates however they are not the best at collecting the cash. An independent that doesn’t necessarily have to be more expensive will provide a much better service.

In addition we will take into account your geographic location, your turnover, the quality of your debtor book, whether there is a contractual element to your invoicing, the quality of your own internal procedures and of course the size of your required funding limit. Within a few minutes of your time and asking a few of these basic questions we guarantee to narrow the most appropriate finance company to to or three. This will save you time and money and free you to get on with running your business.

Like it or not we will probably see allot more pre packed administrations in the new year. Word from the insolvency practitioners is that the inland revenue and customs and excise are taking a tougher approach on PAYE and VAT arrears.  With the traditionally quiet Christmas period and allot of businesses already struggling ,  I think we will potentially see a few more casualties as businesses cecome  even more strapped for cash.

A prepacked administration is basically a deal whereby the business goes into administration and the following day a new company is set up to purchase the assets of the administrator.  In the process the business potentially dumps a load of debt and should be more viable moving forward. Providing factoring or invoice discounting in such a process is a very specialist area and it is advisable to chat to a good broker as to which finance comapny weill provide the best funding.

 I believe it can be argued justifiably for and against a phoenix company. On one hand why should any financial institution support a business which has gone bust and potentially has caused financial pain and grief to its creditors. On the other hand a phoenix business is potentially a leaner and meaner organisation , has a much better chance of trading profitably and will have saved a few jobs in the process.

Invoice financing in a prepacked administration is quite a specialist area and there are only a handful of financial organisations which can truly finance a prepack.  The idea is that an  invoice discounting company will take out the existing finance company prior to the pre pack. In ding so it ensures that an administrator   is on the side of the directors.  The new finance company will collect the debt from the old co and will in theory seamlessly finance the new co as well. A bank for example will appoint their own administarator and as a rule of thumb they wont provide a factoring or invoice discounting facility for the new co.

I read on a blog recently asking what a factoring or invoice financing finance broker does for his money. It was suggested that a broker should approach the most  number of finance companies possible and get the cheapest quote for their customer. I couldn’t disagree more. Any deal that gets touted around the market and effectively becomes a beauty parade of factoring companies can do a business more harm than good. The problem is that if a finance company is aware that they are up against three or more finance companies they don’t take the deal seriously. We have seen business recently that have seen six or seven finance companies.

At XL Business Finance we will talk to our customers and very quickly we can narrow the most appropriate finance company to two or maybe three. Different invoice  finance  companies all have different ares of expertise. WE understand the factoring and invoice discounting market and we understand which finance company will be best suited for your particular requirements. Some finance companies are good in construction which has allot of contractual debt. Other finance companies are good at international trade and some are better than others at credit control.  Also  there are a number of regionalized companies that a strong presence in certain geographical areas. Why would you use  an invoice finance company based in London if your business is based in Manchester or visa versa.

So when we have narrowed it down to the two or three most appropriate finance com[pany w will set up meetings on your behalf. We than say then it comes down to personal choice and you will more often choose  the company that you feel you can develop a rapport with the members of staff. In addition this costs you nothing. Our service is totally free. We do however take a introductory commission for the finance company.  All factoring and invoice discounting companies will pay commissions so rest assured our advice will be impartial and we wont send you a bill!!!