Optimising and managing cashflow is vital to the success of any business – the old adage that “cash is king” has never been more appropriate. We can assist you to access sources of cashflow finance to boost your working capital, fund a programme of growth, or to help with unexpected bumps in the road such as a VAT payment, repair bill or customer bulk order.
If your company is about to take on a new contractor, but needs to increase working capital to propel it forward, speak to us about growth finance. Short-term loans, trade or supply chain funding, can also help to cover forward costs associated with shipping and supplies. Access to finance can also mean you can place larger orders with suppliers and thereby negotiate improved terms/prices.
Ongoing and seasonal finance
For regular payments, including tax, many businesses find the flexibility offered by short-term loans to be beneficial. These allow costs to be spread over a number of months until the next payment is due. Such loans can be renewed on an ongoing basis if desired.
Depending on specific circumstances, we can help start-ups with cash flow or asset financing.
Development finance and bridging loans
Property developers utilise development finance and bridge funding to purchase property, land, materials and meet build overall costs. We can help to arrange finance for these projects.
Revolving credit facilities
Revolving credit facilities offer businesses more control over the funds they draw down. In essence they operate similarly to an agreed overdraft, whereby the lender provides a facility you can draw upon when needed and where you only pay interest on what you use. As an example, if your company needs investment of £100k over the year, but it isn’t all needed at once, a revolving credit facility of between £30-50K might be a good option. This enables the business to draw down on the facility when required, before repaying this borrowing when cashflow allows. The cycle then repeats.
Many SMEs are part of established franchises where they are expected to meet and satisfy brand guidelines. This can mean an investment is required to upgrade property or buy necessary equipment in order to reach the standard for that particular franchise. We can arrange finance to help you achieve this.
Supply chain / trade finance
With cross border trade becoming increasing complex, many businesses are reporting that their supply chains are lengthening, tying up an escalating amount of their cash. Having the financial firepower to buy in bulk can reduce some of the new additional costs that businesses are now having to face. It also enables companies to negotiate pricing improvements with their suppliers. Early payment discounts can also be offered by some suppliers.
Professions such as solicitors, surveyors, architects, dentists, doctors and vets, often rely upon finance to help fund the cost of annual certifications, licences, indemnity insurances, or work in progress. Asset financing can help spread the cost throughout the year, lessening the impact of a one-off payment.
Invoice financing is when funds are advanced against the invoices that a company has generated. With long payment terms it could be 30, 60 or 90 days before you can expect payment, which may be too long to wait in terms of your outgoings. Invoice financing allows you to borrow a percentage of the value of your invoices, paying off the loan as soon as the invoice is paid.