- 28 Jun
Cash Flow Loans
We have had enquiries recently seeking cash flow loans, and we have also seen several of the invoice finance companies extend their product portfolios to include business loans.
The purpose of a cash flow loan is normally to finance the trading of a company, maybe to handle large orders or to enable the company to pursue business growth.
Cash Flow Loan Interest Rates
The terms offered have varied widely. We have seen interest rates promoted varying from 7% per annum up to around the 18% pa mark (there are of course other providers with rates beyond this range).
Whilst everyone would love to select the provides at the bottom of the spectrum - or even the banks that may offer even lower interest rates (to the right customers), it is often a case of finding the providers that are prepared to lend, rather than shopping around for the best rates.
There is something simple and straightforward about a loan. You know how much you are going to get on day one, and you know the term over which you have to repay it. You have regular monthly outgoings over the period which means you can budget for the repayments in your cash flow forecast.
There are variations on the theme, such as offering funding to startups so that they can get on their feet and set up their companies.
Several of the invoice financiers will also offer small top up loans, that can be used to supplement your invoice finance funding through peak cash flow requirements e.g. seasonal spikes in trading, or financing a large order. They can also offer this type of funding on a standalone basis, without the need to use any form of invoice finance.
With regard to business loans, the criteria and security required vary between providers. However, once again if you are in a tight spot and need to raise cash, you may take a more relaxed approach to offering security in order to get the funding that you need. There are unsecured options on the market though.
Other Alternative Options To A Business Loan
If you are unable to find the funding you need via the business loan route, there are still alternative options. Receivables finance releases cash from unpaid invoices, and is normally available to almost all businesses, in one form or another. If you can't get a business loan, don't worry - you will probably qualify for receivables funding as the criteria are much more relaxed.
- 25 Mar
Invoice Finance Ranks As Highest Alternative To A Loan
New research conducted by MarketFinance (reported by Business Money 23/03/20) canvassed the views of business owners about the range of measures being offered by the UK Government, to support them financially through the novel coronavirus pandemic.Some 67% said they believed that funds would not reach them in time, and that they will run out of cash before Easter.Whilst this is concerning, there...
- 14 May
Inksmoor Finance Group Launch Inksmoor Capital Secured Loans.
Inksmoor Finance Group have announced the launch of Inksmoor Capital, secured business loans.REQUEST A CALL FROM INKSMOORInksmoor Capital secure business loans offer customers the affordability of traunche of capital up front, repaid (with interest), over the term of the loan. The fixed monthly payments make it easy to budget for the repayments.The capital can be used for purposes such...
- 14 Jun
New Rates For Marketinvoice Business Loans
Marketinvoice, are members of our funding panel, and have just released new rates for their business loans.The new business loan rates are from 1% per month.Loan terms and criteria are as follows:REQUEST A CALL FROM MARKETINVOICEIn addition to loans, Marketinvoice also offer a range of different receivables financing services, including selective, full turnover options and fixed fee options.Read...
- 08 Jun
Bridging Loan Price - Updated Cost From One Of Our Panel Of Lenders
One of our panel of finance companies have just advised their new price for bridging loans.The bridging loan price is 0.91% per month, rolled up interest, with a set bullet payment at the end of the term of the loan.Bridging loans can be used to purchase commercial property in situations where rapidly agreed funding is necessary in order to make a purchase. Often, a mortgage application may be in...
- 10 Apr
Card Payment Advances From Nucleus Commercial Finance
We have just had some new literature through from Nucleus Commercial Finance regarding their Business Cash Advance product, BCA.We have previously documented their BCA offering, but below are the key details once again.The card payment advance is available to companies that take payments via a card machine. You can borrow up to 120% of your total monthly card payments, up to a maximum of...
- 05 Mar
Topping Up Invoice Finance With A Business Loan
We have had some interesting situations recently where customers are growing so fast that their need for working capital is actually outstripping the funding released by their invoice finance facility. It is great to have such potential trading volumes, but it brings with it a struggle to ensure that your cash flow can cope with the level of funding required.When a business is going through a...
- 21 Feb
Need A 100K Business Loan?
What could you do with a cash injection of £100,000 into your business?That is exaclty the kind of business loans that we have recently secured for clients, and that level of funding is far more available than you might think.You could use that money within your business for almost any purpose that you wish.£100K is a lot of money, and you could put it to good use within your company. Some of...
- 16 Feb
How Business Loans Compare Between Lenders
I had an interesting request recently, one of my contacts wanted my input regarding how a new business loan company was likely to fit into the marketplace, and what the existing market space was like. It prompted me to jot down a few points about business loans that others might find useful.There does seem to be a growing demand for business loans at present. We have a number in the pipeline...
- 08 Nov
Business Cash Advance Against PDQ Machine Receipts
If your company takes card payments you could receive an unsecured loan that is repaid as a percentage of your future receipts through your PDQ machine (Process Data Quickly). This product has just been launched by one of our funding panel and is called Business Cash Advance (BCA).This type of cash advance against your PDQ card payments could be made available to:You can use the money that you...
- 07 Nov
Advances Against Government Funding Instalments With Education Finance
Education finance provides advances against your government funding instalments so that you don't have to wait to get paid before you make expenditure. You can use those funds immediately boosting your working capital position and ironing out the lumpy nature of cash flow in the education sector.Waiting for the Government to pay your funding instalments can cause cash flow pressures for...
- 21 Sep
Nucleus Commercial Finance Lowers Unsecured Loan Rates
Business loan rates from just 7%.We have just been advised that Nucleus Commercial Finance have lowered their unsecured business loan rates. Their interest rates now start from a 7% flat rate, to borrow up to £100K with no additional security, just a personal guarantee.The loan rate is determined according to the credit status of your company, and the term of the loan that you require. The...
- 12 Jul
"Please increase overdraft" - it sounds like a desperate plea to your bank manager!Many UK businesses use this kind of traditional bank finance, our high growth business research found fast growth businesses relying on loans (43%) and overdrafts (31%). We also found that 44% of startups that used loans or overdraft told us that they had less funding than they needed for their business.The...