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TAX FUNDING

Friday, November 19th, 2021

Businesses can often feel the pinch at this time of year as bills escalate and cashflow is erratic due to the slowdown of the Christmas period. Add to that quarterly VAT bills and many businesses can find themselves in a difficult situation.

HMRC has escalated business winding-up orders and liquidations and does not grant extra time to pay easily. So, it is paramount that working capital is available for when tax bills are due. All businesses are aware of their duty to HMRC but sometimes it can be difficult to predict a shortfall. We can help you fund all tax bills including VAT and Corporation Tax plus Payroll and other Working Capital finance.

We have a range of finance options to fund cashflow from Invoice Discounting to unsecured loans. If you need help funding a tax bill, a specialist VAT funding loan is a viable option. This short-term lending option has a maximum term of 6 months and low interest rates so you can manage the short term cashflow requirement without it costing a fortune.

Contact us for more information.

Asset based lending

Thursday, June 27th, 2019

Asset Based Lending (ABL ) allows you to raise significant funding for your business through a combination of traditional Factoring or Invoice Discounting and funds raised against your existing assets. In terms of lending solutions, whether you’re planning on growing, buying, refinancing or expanding, Asset Based Lending can often raise significantly greater funding than traditional bank lending.

How it works

Asset Based Lending allows you to raise from £50k – £50m with:

  • up to 100% on outstanding invoices
  • up to 80% of the market value on plant and machinery
  • up to 30% on raw materials
  • up to 50% on finished products
  • up to 60% on property

Advantages

  • Raise money for MBI/MBO’s or refinancing, without surrendering equity
  • Enjoy continuity of funding, which grows as your business grows
  • ABL is a fast and effective way to fund growth and it’s scalable
  •   It provides a higher availability of working capital when  compared with traditional lending facilities
  • receivable and inventory facilities are revolving facilities,  with available working capital growing in line with your business
  • Build an Asset based Lending package to fit your precise requirements
  • Asset based lending will  help maintain cash flow – especially seasonally for businesses who trade in fluctuating markets.


BAD DEBT PROTECTION

Thursday, June 27th, 2019

Bad debt protection insures your ledger in the event of a customer’s insolvency or protracted non payment. As a business you protect your assets; offices, plant and machinery, computers, or company vehicles. However, your biggest asset, your debtor book, is unprotected.

Not all finance companies provide bad debt protection in the same way therefore it is important that an insurance product is best suited to your needs

There are three main types of bad debt protection products. As to which one is the most suitable will depend on factors such as turnover and quality of your customers

Stand Alone.  

Bad Debt Protection is a way of insuring your ledger against insolvency. Traditionally this is bolted on to a factoring or invoice finance facility however a standalone facility provided by a specialist insurance provider can be cheaper and provide superior cover. Clients can also choose which debtors they want to insure, and only pay the cost of insurance as and when they fund invoices against that debtor.   Insurance can be provided for international trade as well as domestic

Non-Recourse Factoring

Non Recourse factoring provides businesses with a cash flow finance solution along with the added value of bad debt protection. Factoring provides an immediate injection of cash into the business and will provide a source of funding that will grow with your business. Bad debt protection provides peace of mind that you will get paid in the event of a customers’ insolvency / inability to pay. Factoring also can save valuable management time by chasing and collecting outstanding invoices on your behalf.

Non-Recourse Invoice Finance

Similar to other invoice discounting solutions, non-recourse invoice discounting releases cash against your invoices within 24 hours of issue, giving you access to working capital required for day-to-day activities and business expansion.

What makes non-recourse invoice discounting different from other invoice discounting solutions is that the invoice finance company additionally provides bad debt protection to safeguard your business against the risk of insolvency, and even in instances late payment of debts.

For a free without obligation quote, contact XL Business Finance today.

HIGH STREET UNDER THREAT AS SHOPPING HABITS CONTINUE TO CHANGE

Thursday, February 21st, 2019

City centres are in danger of becoming ghost towns as shopping habits change, a committee of MPs has warned.  A fifth of UK retail sales now occur online with that proportion likely to grow, the Housing, Communities and Local Government Committee said.

The Committee called for lower business rates and more regeneration in town centres as well raising taxes for online giants such as Amazon.

The government said it was investing to ensure High Streets “adapt and thrive for generations” but the impact on high streets had been “stark”, resulting in “store closures, persistently empty shops and declining footfall”.

One problem, the committee said, was that High Street retailers paid much higher business rates than online retailers because of their greater reliance on physical premises.

Amazon UK’s rates, for example, are about 0.7% of its UK turnover, while most High Street retailers pay between 1.5% and 6.5%.

To counter this, the MPs said the government should look again at bringing in an online sales tax – an idea the Treasury previously ruled out over concerns it would penalise consumers.

The committee urged it to consider “green taxes” on online deliveries and packaging, as well as higher VAT and a general sales tax.

The revenue raised would be put towards a reduction in business rates for High Street retailers and more funding for regeneration, it said.

The committee also called for planning reforms to create more “green spaces” in city centres, as well as more leisure, culture and social care services.

And it said High Street retailers themselves needed to focus on “experience” and “convenience” to lure shoppers back – for example by extending their opening hours.

High Streets Minister Jake Berry said the government had unveiled a £675m plan to support English High Streets at the last Budget.

“We know High Streets are the backbone of our economy and a crucial part of our local communities, and we want to see them thrive – both now and in the future.

“We’re supporting small retailers too, slashing business rates by a third – building on more than £13bn of rates relief since 2016.”

We have a number of finance options for retailers to support growth and cashflow.  These include Business Loans for any purpose, Asset Finance to fund shop refurbishments of investment in equipment, Commercial Mortgages for buying retail property, Flexible Overdrafts to ease cashflow problems and Merchant Cash Advances which give advances on future sales.

THE AFFECT OF LATE PAYMENTS ON SME’S

Thursday, January 10th, 2019

A report produced by the government on late payments and how they affect SMEs shows that the number of average days a business has to wait to get paid is getting longer. 

Many SMEs, especially when dealing with single large businesses, find it difficult to influence the terms of contracts with customers or challenge them over payments.

Bacs Payment Schemes Limited put the total figure owed to SMEs at £14 billion, while the Zurich Risk Index estimated that SMEs were owed £45 billion by larger companies alone, having previously reported that SMEs were owed a total of £225 billion in late payments. The UK performs worse than other countries both in terms of the proportion of invoices that are late, and the total amount of late payments and amount of late payments written off as bad debt.

There is also a wider cumulative effect, where late payments prevent whole industries and sectors becoming more productive and makes them less able to invest in infrastructure and skills. The report found that SMEs write off up to 7.5% of late payments as bad debt. In the worst-case scenario, small businesses can go bankrupt because of the cash flow problems caused by late payments. It has been estimated that each year as many as 50,000 small business go bankrupt with loss of up to 350,000 jobs.

The Federation of Small Businesses (FSB) in June 2018 found that more than a third of small suppliers had had their payment terms increased over the previous 2 years, indicating what it characterises as “supply chain bullying”. SMEs can also face other unfavourable terms. The FSB reported that 12% of SMEs it surveyed had been asked for a discount for prompt payment, 7% for retrospective discounting, 6% for a fee to remain on a suppliers list and 3% had experienced a discount being applied after goods and services had been supplied.

Businesses can consider Factoring invoicing to ease the pressure on cashflow. We specialise in this type of finance so contact us for more information.

Funding options regardless of trading history

Thursday, April 26th, 2018

Businesses come in all different shapes and sizes and each has their own story. Some lenders look at the business and its financial records to asses their ability to repay the loan based only on factual information and trading history. Of course this is a very sensible tactic but sometimes a negative history is not what it seems and can often be explained. Our staff talk to lenders and explain our client’s back stories allowing the lender to make an informed decision.

After sending a loan application on behalf of a client recently we were surprised when the application was rejected by one of our usual lenders. We had provided all the information required, the company was profitable and had shown growth. It became clear that the Directors had experienced a previous liquidation and this was the reason for the rejection. We tried all our usual lenders with no luck but we didn’t give up. There was a very valid reason for the previous liquidation and we were able to explain this to one of our lenders and secured a £50,000 loan for the client.

To discuss your lending options get in touch with us.

Flexible Overdrafts

Tuesday, April 10th, 2012

Need an overdraft but don’t want to move banks. It is now possible to obtain flexible stand alone business overdraft. XL Business Finance now has access to a very unique business finance facility that allows you to withdraw up to 50% of your average sale ledger in the form of an overaft facility which runs alongside your current banking arrangements. It is a new and simple funding solution designed to help your business access cash it needs to run, develop and grow.  Click here for further information or contact us direct.

Guest Blog:Top 5 Features of SugarCRM

Monday, February 6th, 2012

Sugar CRM. Ever heard of it? It’s like candy for your customers…thus the name entails. It’s a great way to boost sales for your business, retain customers, and actually save money while doing so.

Here are the top 5 features that might make you consider using Sugar:

1. It’s affordable. Their most popular plan – the ‘professional version’ is only $540 per year per user. That’s equivalent to only $45 per month. It has a lower cost of entry and its open platform is cloud-based allowing for it to be cheaper than most on-premise solutions. Needless to say, it’s a cost-effective way to stay engaged with your customers and give them what they love – a little sugar.
2. Options and flexibility. SugarCRM offers customizations galore! It integrates fluidly with many of the current CRM products you may be using. Sugar uses common language, utilizes SOAP and REST API and there’s no hidden fees or limitations which gives you greater control. There’s also a myriad of add-ons that can be used with Sugar. Not to mention…SugarCRM also works in an open environment, giving you more control of your company’s future and saving you money while doing so.
3. It’s social! There’s an Activity Streams dashlet that allows you to see Facebook friends’/fans’ news feeds, see who you should get connected with on LinkedIn, and read tweets of all the people you follow in the dashlet. The platform also lets you add a Twitter handle to a contact or lead and read their tweets directly in the contact or lead record. Lastly, Sugar also has great e-mail integration, letting you sync contacts, calendars and tasks from Outlook, Gmail, Yahoo! Mail, Lotus Notes and pretty much any IMAP mail server.
4. Collaboration and Project Management. Sugar delivers a full project management solution combined with the sales management, marketing automation, and customer support used by employees to manage customer-centric activities. These capabilities allow users to deploy projects across all customer-facing tasks, including campaigns, opportunities, accounts, and customer cases. Since project management is integrated with Sugar’s customer information, users no longer need to be concerned with redundant or inaccurate information, lost customer data, poor information sharing, or lack of user adoption.
5. It’s Mobile! Sales teams surely love this feature as they’re often on-the-go. Sugar allows you to access client information from your tablet or Smartphone and also lets you add info in real time. This means that if you’re at an event and encounter a lead, you can seamlessly add their information to Sugar mobile and your sales team can have an e-mail to them in minutes!

For further business improvement ideas please contact Roger Brown from nuOrder Limited, a leading business consultancy working with many award winning clients.
See www.nuOrder.co.uk

Business doesn’t happen, you make it!

Guest Blog: Increase your gross profit margin

Tuesday, January 31st, 2012

The amount of profit you make is due to either your success or failure and ultimately fuels the growth of your business, generates a financial support for the owners and provides for the well being of the staff.

To increase your profits you need to determine factors contributing to your gross profit and your overheads. Gross profit requires you to either expand your sales income while controlling your direct costs, or reduce direct costs to increase gross profit.

WH Smith the high street retailer has pleased the financial markets by delivering lower revenue but with a higher margin %. As they say ‘revenue is for vanity, profit is for sanity, and cash is reality’.

To do this you need to ensure the following:

• You know and understand your market/s and your competitors
• You have full product and/or service knowledge and you are technically capable in managing all aspects of the business
• Your service and/or products are of the highest quality, delivered on time and run in accordance with any legislation or other specifications.
• You apply marketing campaigns that are cost-effective but increase your sales. These include in-house promotions, leaflets, press releases and adverts.

Your business overheads also need to be kept under control and requires you to monitor, review and strategise for the following:

• Business Expenses – keep to an absolute minimum, and ensure that any additional overheads you assume result in increased profitability and/or efficiency.
• Increase Overheads – ensure that you have reviewed the market and established where the best place is to purchase your stock. Reliability and costs need to be justified.
• Assets acquired on finance – Review and check your finance options to see if you can getter a better deal elsewhere or reduce your general loan costs
• Reviews – Many businesses could benefit from a regular review of their telephone and insurance costs. Even bank charges can often be reduced through negotiation or review.
• Credit – Regularly monitor your credit account customers to avoid bad debts occurring and find the best credit card deal relating to your business.

Roger T Brown
Consultant
http://www.nuOrder.co.uk

 

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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