Unpaid invoices represent money that will be paid to you, but you have to wait for the payment terms to elapse. Invoice Finance is a way of lending money based on what your customers owe to your business. These are some examples of what you could use your business loan for. Purchase new machinery, equipment or vehicles.If you’re turned down for an unsecured loan, you may still be able to obtain secured loans. As the loan won’t be secured against, a lender will see this as a higher risk because if you were unable to pay the loan back, they won’t have a security net. Unsecured Business loans are the reverse of secured loans where you don’t need to put any collateral up. From a lender’s perspective, they have your asset as collateral so if you can’t pay your loan back, they will be able to sell your asset to cover what you owe. A secured loan means you are providing security that your loan will be repaid. The lender will hold the deed or title until the loan is paid in full. Secured Business loans are protected by an asset such as a home, car, stock, bonds or personal property. The most popular type of business loans are: Unsecured Business Loans and Secured Business Loans. The business will receive a lump sum of money from a lender which they will be able to use how they like for their business. It will be paid back over monthly affordable installments over a period of time with added interest. Invoice Discounting solutions are tailored for specific needs for business with sales in excess of £250,000.A business loan is money that’s lent to a business for business purposes. This can also be provided through an asset backed finance facility by releasing funds against other assets, such as stock, plant and machinery, land and buildings. Transaction funding such as mergers, acquisitions, MBOs and MBIs may well need additional headroom over and above invoice discounting funding. The business should have good financial controls and a strong financial background. This facility is provided confidentially, so customers remain unaware of the financing arrangements. The remaining balance is made available when customers settle their outstanding invoices. Up to 85% is made available within 24 hours of an invoice being raised. Invoice Discounting provides an injection of cash into a business by releasing money against unpaid sales invoices. Reduces risks and administrative burdens normally associated with exporting.Credit checks available to minimise trading risk and give peace of mind.Up-to-date account information ensures control is retained for informed decision making.Frees businesses from the hassle of sending statements and reminder notices.Provides financial headroom giving greater financial flexibility.Enables working capital to grow in line with sales.Assistance with telephone credit control can be provided if required.Ĭredit vetting is available to assist in decisions about extending credit to an existing customer or taking on a brand new customer - helping prevent bad debts before they occur. This service is suited especially to growing businesses and new starts.įlexible credit management is built into the agreement with statements and reminder notices issued to reduce administrative burden on the business. Up to 90% of their value is released within 24 hours of the Invoice being raised. We know that each business has different financial needs and, for every unique situation, we aim to deliver the best possible solutions.Ĭashflow finance by business factoring Factoring typically improves business cashflow by releasing money against unpaid invoices. We aim to bring a fresh approach to both Factoring and Confidential Invoice Discounting.
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