Market Overview
Structuring the working capital a business needs to expand and progress and to be able to concentrate on moving the business forward instead of wasting time and money chasing overdue payments is crtitical. To pay fixed weekly and monthly costs, safe in the knowledge that the funds needed are always going to be in the business account can provide a high level of security for company directors
These are just some of the benefits that working with Business Assistance to structure a Cash Flow or Trade Finance facility can bring to your business.
Businesses have many options when considering funding. Bank loans and overdrafts have historically been the preferred choice of finance. However, today more and more businesses are waking up to the real benefits of alternative sources of finance. Solutions such as Invoice Discounting, Factoring, Trade and Stock Finance, can provide business with a flexible and ongoing supply of funds by releasing the money tied up in unpaid invoices or stock. With more than 39,000 SME's now using this form of finance it is becoming a mainstream form of finance.
We operate a system which encourages lenders to competitively bid for our clients’ finance applications. This ultimately means better rates and terms for our clients.
When can Cash Flow Finance benefit business ?
| Turnover growing rapidly | = | Finance sales to reduce cashflow pressure |
| Overdraft under pressure | = | Immediate release of working capital |
| Gearing too high | = | Use debtors as better leveraged asset |
| Too much cash tied up in unpaid invoices | = | Need to reduce debt turn |
| Improve credit control | = | Outsource to release time resources |
| Looking to do MBO/MBI – Deposits for Capital Items or Properties | = | Cash injection against debtors and future sales |
| Customer wants to reduce personal security | = | Unlock sales ledger asset |
| Seeking to break into export markets | = | Need to compete on open A/c terms |
| Start up / insufficient capital base | = | Use sales to fund growth |
| Using competitor services | = | Potentially improve service. Increase funding levels. |
Basic Criteria
| Projected Turnover > £100K | Selling to several trade customers |
| Sell on trade credit terms | Invoice on completion of service or product delivery |
| Sell as a Principal to customers, not as an agent | Low level of customer returns/disputes |
Additional Information
| Isn’t Cash Flow Finance Expensive? | Will it upset my customers? |
| The cost of borrowing compares with an overdraft and may be cheaper | Lenderss collect from businesses of all sizes. |
| A typical service charge is in the range of 0.25% - 3% of T/O and is calculated per business. | A specific Client Manager and Client Administrator will be assigned to each client to understand your ledger and |
| It is more than just finance, it offers growing businesses a range of benefits that are not matched by other forms of finance | The debt turn is usually decreased through Cash Flow Finance structures. |
| It fuels the sales of businesses large and small | 30,000 businesses use Invoice Finance including many well-known Companies. |
Growing Business Through Improved Cashflow
| Features | Benefits |
| Up to 90% of invoice value available immediately with the balance when the customers pay | Immediate release of working capital in line with sales profile. |
| Finances growth – today’s sales financing tomorrow’s growth | Improves buying power with suppliers |
| Open ended facility. Finance grows in line with sales | Prevents overtrading. No need to continually renegotiate overdraft facility |
| No need to sacrifice equity or pledge personal assets as security | Enables our clients to grow on average 3-4 times the rate of GDP |
| Unlocks the asset value of the sales ledger |
Credit Management
| Tailored credit control agreed with each client | Service built around client needs |
| Provides credit control, sales ledger administration and payment processing | Releases time and resources for sales and service |
| Tactful, efficient credit controllers, working to get payments in promptly and support A/cs | The right balance - invoices paid promptly and customer relationships safeguarded |
| Lenders collect from most types of businesses from multi-nationals to corner shops |
Export Services
| All services available for all major world markets | Exporters able to offer competitive ‘buyer friendly’ open A/c trading terms |
| Funding is available in GBP £ or in the invoice currency including Euros | Ability to match currency receipts and payments to reduce exchange risk |
| We can introduce International Companies if linguistic skills are required or very wide spread of debtors. |
Back to: Trade Finance
Business Assistance is accredited by the National Association of Commercial Finance Brokers.