- 01 Jun
Business Finance With Bad Credit
Getting business finance with bad credit whether its your company that has a bad credit history, or you personally, appears to be a concern for a number of businesses.
I recently read an article online about how to improve the credit rating of your business, clearly production of the article had been prompted by a need that the authors had identified for companies with bad credit to raise finance.
Improving Your Business Credit
It gave lots of good advice for improving your credit rating such as:
- Not compounding the situation by shopping around after being turned down i.e. running more searches.
- Looking at your credit report to see where the issues are.
- Asking your suppliers to report your payments to credit agencies.
- Reducing your balances on your credit facilities.
- Increasing credit limits to reduce utilisation levels.
Whilst its good advice, some companies are not going to be in a position to have credit facilities increased or to reduce balances. The reality is that it can take a long time, and a lot of effort and knowledge to be able to rebuild a credit profile. A simpler solution to getting company finance may be required. There are sources of finance that are not reliant upon your credit rating in order to provide business finance. Indeed it can be provided to companies that are in poor financial shape, factoring your debts is a potential short cut to raising cash for your company.
I felt the need to comment on the article as factoring is a freely available source of business finance that often has little regard for your credit history (company or personal) as it tends to focus on the quality of your receivable (the debts owed to you by your customers). Therefore, the onus is on the standing of your customers, as opposed to your standing.
You may not believe it but you can raise substantial amounts of cash through this methodology despite having issues such as court judgement against your company or even being in a Creditor's Voluntary Arrangement (a type of insolvency arrangement whereby part of all of your debt is repaid according to an agreed plan). I recently posted about how finance can be available for CVA companies even within difficult sectors like construction.
The comment that I posted on the article about improving your credit was something like this:
"If you are a company with a poor credit rating you are highly likely to still be able to raise money through factoring. Factoring can release c. 85% of your unpaid sales invoices for you to use for any purpose and the criteria to qualify are based on the quality of your customers not you. Even if you have CCJs or are in a CVA (creditor's voluntary arrangement) you will still be able to get factoring so you don't need to worry about your credit rating to get finance from this source. We have just published an article about all the different types of factoring available and are happy to help anyone struggling to raise money for their company."
So whilst rebuilding your credit may be a stepping stone to getting finance, you may be able to skip to the end goal and raise that finance through factoring. That money could be available in just a few days. We are happy to help point you towards finance companies that specialise in financing companies that have bad credit, call us for a confidential discussion on: 03330 113622.
- 14 Oct
Invoice Discounting Can Be Available After A Liquidation.
If your business fails it can feel like the end of your world. What's worse is that you might struggle to get back into business, as traditional lenders don't want to support your new venture. Even if you have had a previous company enter insolvency, such as a compulsory liquidation, you may still be able to get funding if you decide to start a new company. Everyone deserves a second chance.We...
- 27 Feb
Invoice Finance Despite A CCJ And Time To Pay Arrangement
Demonstrations of how we can help companies are more powerful than just talking about theoretical cases. In a recent example case, we had a prospect that was looking for a more stable facility than the selective invoice finance facility that they had used sporadically, from one of the single invoice finance providers.This problem that they had experienced was that their selective invoice finance...
- 18 Feb
Can I Access Invoice Finance With CCJs?
Analytical software allows you to see exactly how people are finding your website, and which search terms they are using. I just noticed a repeated search phrase being used "can I access invoice finance with CCJs?". It would make sense as you are most likely to need funding support if you are under creditor pressure and you have ended up being taken to court by a supplier.A CCJ is a "County...
- 21 Sep
Invoice Finance For Non Homeowners In Rented Accommodation
Renting doesn't have to be a barrier to accessing receivables finance for your company. However the number of invoice finance companies requiring clients to be homeowners has increased in recent years. Historically, it was never an issue, but many of the providers have added in this requirement, in order to ensure there is some substance behind personal guarantees that are often required by some...
- 13 Apr
Alternative Finance If Declined By A Bank
If your company is having difficulty finding business finance through traditional sources i.e. banks, you may want to turn to the alternative finance market, which will provide further options.There are plenty of alternative finance solutions here, we have arrangements in place with a large number of funders that can help in a wide range of circumstances. These include alternatives to overdraft,...
- 30 Mar
Business Funding For A Discharged Bankrupt Director
We have expertise in helping companies that have struggled to raise the business funding that they need elsewhere. There can be for many different reasons, but one that we are currently working with is a company where the Director is a discharged bankrupt.Bankruptcy is where an individual cannot pay their debts (they are insolvent) and either they petition a Court to be made bankrupt, or they are...
- 08 Mar
Help For A Roofing Contractor Declined Due To A CCJ
I wanted to share this interesting case that we are in the process of assisting. It concerns a roofing contractor, working within the construction sector, that has a low value CCJ (County Court Judgement) from several years ago.Firstly there is the issue of the company operating within the construction sector, of course not all invoice finance companies will deal with construction related...
- 10 Nov
Help When Declined For Business Finance
I was looking through some completed deals and it struck me how many had been declined for business finance before they came to us, and how many we were still able to help.In fact, we specialise in being able to help when you have been declined for business finance elsewhere. Often we have been able to assist companies who think that there are no options available to them. It is often a case of...
- 24 Oct
Examples Where We Helped Companies Declined For Business Finance
Yesterday, I posted about how we often help companies that have been declined for business Finance. These are a few examples of deals where we have been able to help in circumstances where the clients have not been able to secure the required business finance on their own.These are a few examples of the situations that we have been able to help with, each one has a link to the case study that...
- 23 Oct
We Can Help With Difficult Cases Where You Have Been Declined For Finance
We are able to help you find business finance even in difficult circumstances where you have been previously declined for finance. In fact, we specialise in helping businesses that have been unable to secure the finance that they need through other means.Some of the difficult cases that we have helped in the past include:Read some case studies with examples of where we have helped clients in...
- 01 Aug
Lender Of Last Resort
Is being called a "lender of last resort" such a bad thing?The term could be defined as a financier that is called upon only when the borrower can't get finance anywhere else. Often they are considered the last resort because either the terms are onerous or the price is higher than the norm.Back when I was working for factoring companies in the 80s and early 90s, there was a definite aversion to...