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Posts Tagged ‘factoring company’

Why use a factoring broker!

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.,


Factoring for a new start business

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.

Independent or bank owned factoring company

Friday, April 30th, 2010

When it comes to organising a factoring facility there are basicLly two choices a bNk owned factoring compnay is a decision of the bank but as we know the banks try and be all things to all men And they don’t necessarily five the best service. A independent factoring company is a business set up independently from the banks and they usually specialise in factoring alone and As such their service is second to non.
FActoring is all about adding value in terms of providing the most possible cash against your unpaid invoices. It is also about collecting your cash within 90 days in the most efficient and professional manner.
Therefore cheapest is not always best. There is Absolutely no point going with the cheapest quote if that particular finder cannot get the cash through the door . For example a number of bank operated factoring companies will only telephone your top ten customers and leave the rest to chance or to letter.
At XL Business finAnce we have plenty of experience in pointing our customers in the right direction. We would recommend no more than two or three ompanoes that will best suit your particular requirement. The companies that we recommend will be selected based on your location, turnover, quality of debtor book, length of time trading and profitability. Our recommends will be very similar in terms of business they are looking for but it will come down to personalities as go which one you choose. As soon as you start seeing more than two or three companies they will not all take you seriously and as such you may not end up with the best possible deal.

Factoring Finder

Saturday, April 17th, 2010

There are so many options available when it comes to factoring finance. How do you know that you are getting the best possible deal. A good factoring broker will be able to recommend the best possible finance companies for your particular circumstances.

It makes sense to see two or three providers but if you get any more in then non of the finance companies will take you seriously. You may also find that your accountant will recommend a factoring company. We think this might be quite dangerous because most accountants will only have had experience of one or two finance companies. In our opinion most auditors are like GPs. They will have a general knowledge of most financial products and services but will not be able to pinpoint the best possible funders. Going to your accountant for factoring advice could be like going to your butcher for open heart surgery!

So why can a factoring broker provide the best possible advise. A good factoring broker will know all the different finance companies and more importantly they will know their different sweet spots. Not all finance companies can beall things to all men although the banks will try and tell you they are. Take factoring for example. Certain high street banks will only chase your  top three debtors by telephone. The rest they do by post if they can be bothered at all. Other banks have their credit department , service department and collections department in different parts of the country. How can you get the best possible service? This is just one consideration that must be taken into account but I think it gets the point across quite nicely.

invoice factoring help

Tuesday, December 29th, 2009

Invoice factoring enables a business to obtain immediate cash against its unpaid sales ledger. There are a few finance companies that can actually provide you cash within 24 hours. If you have a sales ledger of £10ok you can expect to receive an immediate cash injection of up to £90,000. The finance company uses the unpaid invoices as security and they are experts in chasing and collecting your debts. Most finance companies will provide credit for up to 90 days from the point you raise the invoice.

Invoice factoring is usually provided on a diclsed basis. Ie your customers will be ware that you are factoring your invoices as you provide the finance company bank details on your invoice so your customers will pay the proceeds into a trust account. The finance company will clear the trust account everday payng you the remaining  balance of 10-20% less any charges due.

As factoring provides credit control , in our opinion the banks do not always provide the best service. It has been said that certain well known high street banks will only chase by telephone your top 3 or 4 customers and leave the rest to be chased by phone. Therefore the debt turn as it is known can be quite lengthy. A specialist factoring company will chase by telephone every single one of your debtors and as such tend to collect the money in allot quicker. Although some of the more specialist factoring companies can be a little more expensive it is no point going for the cheaper option if you are not getting your cash in quick enough. It must be remembered that factoring is very much a value added product and you tend to get what you pay for.

XL Business Finance can help you understand the difference between the different options available and we can add value to your business by pointing you in the right direction .

Bad debt factoring

Wednesday, December 2nd, 2009

Bad debt factoring can provide the financial freedom of releasing cash against unpaid invoices, a full credit control function and bad debt protection rolled into one!  Ninety percent of businesses go out of business because they run out of cash and not because they are not profitable. In the current economic climate it make sense to out source your credit control to leave you free to concentrate of running  your business. If your business has a turnover of circa £100,000 your business will probably be eligible for funding.

Factoring will release up to 90% of your unpaid invoices immediately therefore if you have outstanding invoices of £1.0m it may be possible to release £900k immediately. It doesn’t matter how long the business has been trading or the financial condition of the business there is normally a business to suit your particular circumstances.

A full factoring facility will start from as little as a couple of hundred pounds per month. Be beware however not every factoring company is the same. Banks for example will only chase your top few customers by phone relying on the post to chase your remaining customers.  Other factoring companies will chase every single customer by telephone and as such are they are better at collecting your invoices. They will give you the best cash flow. These finance companies can be more expensive but they can potentially add more value to your business.

Bad debt protection or on recourse factoring can also be added for a premium. Again different finance companies are better than others at providing bad debt protection. Different funders use different means to provide bad debt protection and the limits they are set are based on the credit insurance companies providing limits for you customers. In order to find out which finance company is best for your business give us a call for an independent assessment.

Invoice Factoring for a new start business

Friday, November 27th, 2009

In the current economic climate it is still just as difficult for a new start  business to obtain any sort of funding. As a general rule of thumb in order to be eligible for funding from a high street bank or finance company you must have been trading for at least 3 years, be profitable, provide a good old business plan, provide inside leg measurements and of course they will need your wife and kids as security. Hey and what about the EFG funding. Does anyone know a business who has managed to secure any EFG  funding?  The good news invoice factoring is probably the  easiest form of finance available for any new start business. And that includes asset finance of which are bloody experts!

Invoice factoring which enables a business to raise cash against unpaid invoices will provide most new start business with the ability to trade within the most difficult period of any new start business. As a business raises an invoice a factoring facility will provide up to 90% of your cash immediately. When your customer pays your invoice to your factoring company they will repay the remaining 10%  of your invoice less any charges.  As a new start business you will only be offered factoring which will also provide a full credit control service and depending on the spread of your customers you may be able to obtain non recourse factoring which will offer credit insurance. It is even relatively easy to obtain funding if you adverse credit. The best plan of action here would be to be fully open in your dealings as it is better to get all those skeletons out in one go.

XL Business can help you choose the appropriate factoring company for your business. How we guide you to the right factoring company will depend on your location, the expected turnover and the particular sector of your business. Please will free to give us a call to discuss your own requirements.

What do I do if my bank withdraws my factoring facility

Wednesday, November 18th, 2009

Although the high street banks all say that their doors are open for business in reality this couldn’t be further from the truth. What is happening at the moment is that the banks are looking at their portfolios very closely in deed. If a business steps out of line in terms of how they operate their factoring facility , they post a bad set of results the high street banks are proving to be very in flexible. In truth before the recession they were probably taking on too many customers than they should hve done. As a result service levels dropped and now that the economy has taken a turn for the worse they cannot manage their accounts as they should.

The result is that Banks  are looking for excuses to clean up their portfolios. At XL Business Finance we are seeing more and more businesses that have been given notice to change to a new factoring company. Although this will be a worry for many businesses the good news is that are plenty of finance companies that are actively looking for the customers that the high street banks do not wish to keep on their books. XL Business Finance has the experience and knowledge of the UK factoring market to help you find a new finance company.

We will make sure that your new company will provide you with the service and flexibility that your business will require. Any  independent factoring company will provide a much better service than any high street bank. Depending on your own particular circumstances and geographical location we will ensure that you get talking to the most appropriate finance company.

How to choose an invoice finance company

Monday, November 16th, 2009

A question that at XL Business Finance we are asked most frequently. Imagine the financial freedom that an invoice finance  facility will provide. Up to 90% of unpaid invoices are released by way of a cash injection into your business as and when you raise your invoices. This is a great facility which grows with your business and there are many UK based finance companies offering to help. One search on google will reveal hundreds of factoring companies.  Some are bank owned, others are independent and most are still being aggressive in terms of doing deals. How do you know which finance company is best for your particular needs. At XL Business Finance we have 15 years experience of helping and advising our clients.

Invoice Finance is basically a generic term for the many different finance options available. Factoring , invoice discounting, confidential factoring and confidential invoice discounting are all basically forms of debtor finance.   Which finance company is best for you depends on which facility you require. New start businesses, businesses with a poor set of trading results or with a relatively small turnover will only be offered a  disclosed factoring facility whereby your customers will be aware that a finance company is financing your invoices.  XL Business finance would normally recommended one of the larger independents for a factoring facilty because normally they provide a better service than a bank based factoring company. However if your business is long established and profitable and the finance company will allow you to do your credit control then in certain circumstances a bank based invoice discounting company may be more appropriate. However beware if your business trading performance takes a urn for the worst then you will be wishing you have gone with a independent who tend to be more approachable and flexible.

Why use a Factoring Broker

Tuesday, September 29th, 2009

XL Business Finance is one of the UK’s leading independent factoring company. We save our clients time and money choosing the right finance company. The good news is as well is that our service is totally free.

There are literally dozens of UK based factoring and invoice discounting companies so how can you be sure the finance company you choose is the best one to suit your particular needs? During our initial free consultation with our customers we can quickly determine which two or three finance companies will be best suited to our customers. WE use our 10 years experience within the industry and base our decision on the age of a business, its turnover, how profitable the business is or is not, and whether there are any other unique requirements within the facility required. For example there are only one or two finance companies that will fund contractual debt and construction companies. Whether there is any international trade or importing and exporting will also have an influence on the decision.

Therefore we use our experience to make one or two recommendations and we believe that this saves our customers considerable time and expense. Although we don’t charge our clients we will get an introductory commission from the finance company.  All factoring companies pay commission so we are not loyal to any one lender. We have to add value to our service and make the best possible recommendations otherwise we don’t get paid!


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