- 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.
High Growth Phase Over Trading
When a business is going through a very high growth phase, it can be a case of the volume of trade being limited only by the amount of working capital that they company can access to pay for raw materials, staff wages and other operating costs. We have seen numerous examples of clients having to turn down potential orders as they simply cannot afford to fund them - accepting these kinds of orders is often called over trading.
Top Up Funding For Invoice Finance Users
Several of our portfolio of invoice finance clients are growing very rapidly, and in a few cases their needs for capital are outstripping the 85% or even 90%, of invoice value, released by their invoice finance facilities. There are potential solutions in such cases.
It may be possible to access some form of top-up business loan, in addition to an existing invoice finance facility. This can be arranged if your are an existing client of ours or even if you are not, but are already using factoring or invoice discounting from another provider. This loan can be arranged without affecting your existing funding arrangements, in order to release additional working capital for your company to use.
Business Loans & Security
If there are any other assets available as security, it could be a very simple situation of leveraging them in order to secure additional funding. However, even without additional assets there are other possible avenues. Some possibilities are as follows:
- A cash flow loan to top up an invoice finance facility.
- A business loan in addition to factoring or invoice discounting.
Business Loans For Startups
Our partners that deal with sourcing business loans for clients have access to a full range of providers, that can look to structure a loan based on your particular circumstances. Business loans may be available to new startup companies and even companies where the prime movers are not homeowners.
Declined By A Bank?
Clients often assume that because a bank won't give them a loan - they won't get one elsewhere. That is not the case, there are many alternative lenders that may be able to help when your bank have declined you for a loan or overdraft.
Act Before The Opportunity Disappears
One word of caution, I hear rumours that some lenders are increasing interest rates and taking tougher stances about who they will lend to, off the back of an increase in defaults and bad debts that they have suffered. There is a fear that some lenders may start to pull out of this market space and so if you have a requirement act quickly, secure the funds you need at reasonable rates, before there is any wholesale movement across the market. Act before the opportunity disappears.
Please contact Sean on 03330 113622 or us the green application form on this page.
- 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...
- 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...