Did you know that most businesses cease trading owing to cash flow problems and not due to lack of profits! Unless your company is collecting its income it will not survive. We can offer many solutions to help our commercial clients.
Cash flow and Trade Finance solutions include Invoice Discounting (and confidential solutions), Factoring, Trade & Debtor Transaction Finance available such as Contractual Debt Finance, Letters of Credit, Specialised Debt Finance, VAT Export Finance, …payout in as little as 48 hours.
We Save You Time and Money by using your information to select the right lender for your company’s circumstances!
Various solutions to your cash flow problems are available, most are off balance sheet i.e. do not affect existing banking facilities and typically include:-
- Factoring
- Invoice Discounting
- Confidential Invoice Discounting
If your business needs a working capital injection, or funding for a hard won contract, or to raise cash using stock as collateral, or to purchase goods from abroad, we can help you to solve these problems by offering you the right solution such as
- Trade & Transaction Finance
- Letters of Credit
- Specialised Debt Finance
- Contractual Debt Finance
- VAT Export Finance
- Import Finance
- Block Discounting
We can arrange cash flow solutions for the following situations
- Turnover £100,000 to £100m
- Established & Start Up Companies
- IVA’s & CVA’s
- Partial Factoring
- Poor Credit History
- Contractual
- Change Existing Factor
- Rejected by Other Factor
Factoring
Factoring is the oldest method of loaning against receivables is called factoring. Technically it is not a loan against the receivables because the factoring company actually purchases the receivables and there is no further recourse for the lack of payment which may occur on the receivable.
The borrower is not responsible for the collection of the receivables or for any bad debt, which may arise. Some lenders do not offer non recourse factoring and your company will still be responsible for any bad debts.Exporters can use factoring in any country where the lender has an office or partners.
Invoice Discounting
Invoice Discounting can be done on a disclosed or confidential basis. A separate account is established with a commercial bank whereby remittances from your customer are deposited into that account. The commercial finance company then has a simultaneous deposit to your regular account less the amount of daily interest.
At no time will your customers be made aware of the fact that you have their accounts pledged as the security for a receivables loan, but the principle of dominion under the Uniform Commercial Code requires that the remittances be deposited in the control of the lender. Generally speaking, the record keeping process of accounts receivable loans is not cumbersome and is usually based on a photocopy or carbon of your existing sales records.
Trade & Transaction Finance
Is generally used for the import of goods and services from abroad, frequently Asia, which have been sold to quality UK customers.The whole transaction is usually financed.The client becomes the supplier to the lender and the lender becomes the supplier to the end customer.
Letters of Credit
Letters of Credit are open lines of credit up to a specific amount guaranteeing that the exporter will be paid by the importer. The transaction is usually the primary security although additional security may be required. We can currently arrange “Letters of Credit” for exporters based in many parts of the world. Contact us to see if we can help you!
Contractual Debt Finance
Cash Flow for goods and services is improved by accelerating cash due from selected prime customers, in particular the construction industry where CIS certificates are required. The client becomes the supplier to the lender and the lender becomes the supplier to the end customer. The lender usually needs to be on board at the contract stage.
Alternatively, an entire contract can be rolled up and paid up front for an agreed discount. New
VAT Export Finance
VAT Export Finance can be arranged for up to 3 months, generating working capital.
We also have access to a facility that can give major savings for experienced and profitable exporters that can dramatically reduce costs. Contact us to see if your business model can enable you to make major savings on your VAT export finance costs or ease your cash flow.
Import Finance
Up to 3 months credit generating working capital. Typical funding mechanism is via Letter of Credit, however there are other methods available depending on circumstances.
Block Discounting
Block Discounting is used by rental or leasing companies. Raise finance to grow your company by “securitising” your future receivables. Finance is secured on the value of your rental agreements leaving your customer unaware of the transaction, ownership of goods is unchanged, cash flow is improved and your interest rate exposure is “hedged”.
Cash Flow Solution costs typically depend on the quality of your customers & not your own company but can cost as little as 2% over base rate for factoring & invoice discounting, in some cases it may be between 1% & 2% per month. However in many cases the savings in managing your debtor book can reduce the true cost to near zero. Costs for options can only be quoted on a case by case basis.