- 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.
Expected Funding Delays
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 are established independent funders that can deliver funds within a few days.
Caution About Taking Out Loans
Only 52% are apparently considering using the coronavirus Business Interruption Loan Scheme (CBILS) to support their businesses, because 67% already have a pre-existing loan, and having to make repayments for any additional loan is their biggest concern (36%).
With the research suggesting that a third of businesses expect at least a 50% reduction in revenue, it is not surprising that they are cautious about taking on additional loans, that they may struggle to repay.
An Alternative To Repaying Loans
There are alternatives to taking out, and having to repay business loans. In the study, borrowing against invoices for completed work was the highest ranked alternative to taking out a loan with 48% considering the option over the next year.
See our: Guide To Invoice Funding.
The Advantage Of Invoice Funding Over Loans
The advantage of funding against invoices is that instead of taking on the debt associated with a loan (that you repay in installments), you are releasing the funds from invoices for work already completed. This money is already yours - you are just accessing it more quickly than the time it takes your customers to pay. This type of facility accelerates your cash flow.
You can do this for all your sales ledger or you can opt for a selective facility whereby you choose invoices to be funded, without any commitment. You can usually also take out this type of funding if you already have a business loan, or overdraft in place.
Whilst payment terms in the UK are typically stated on invoices as 30 days, customers will frequently take longer to pay. The impact of the virus, and the lockdown is likely to see customers taking even longer to pay invoices. The ability to release funds immediately could be very positive for the cash flow of UK companies.
- 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...
- 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.REQUEST A QUOTEThe terms offered have varied widely. We have...
- 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...