Very few businesses can operate today without taking insolvency, advantage of the wide range of finance packages available Commercial Loans business property residential care homes buy-to-let business startups investment property What is Invoice Factoring? a method by which companies can borrow money on a short term basis an arrangement that allows a business to realise immediately the cash benefit of sales a bankrupcy advice, popular form of short term cash flow financing A Factor will typically pay up to 80% of the invoice value to the borrower with a balence (less fees) being forwarded liquidation, once payment is received from the debtor. Why use Factoring? to prevent business failure through lack of cashflow it offers a dynamic and flexible form of funding to ensure that businesses can pay wages or creditors on time Factoring allows business to have the cash available to fund the next order regardless of wether or not payment has been received invoice factoring, for the last order. Factoring has been used in the UK for over 35years more than 25,000 UK businesses use factoring, the majority with a turnover below £500,000 although by the end of 1999 there were over 800 businesses with a turnover in excess of £10m using factoring. Some of the benefits of factoring outsourcing the credit collection process mortgage rates, can reduce staffing costs tighter credit control procedures can reduce the incidence of bad debt may prevent the loss of sales due to lack of funds no annual fee or management charges discounts may be obtained by paying suppliers promptly growth financed by sales rather than external equity What is Asset Finance? a method of financing business assets by a secured loans, credit or leasing facility an arrangement that leaves other lines of credit intact for working capital security for the facility is taken on the asset being purchased with the cost being spread over a period up to the useful life of the equipment being purchased. Types of Asset Finance hire purchase lease purchase contract purchase finance lease operating lease mortgages, contract hire sale and leaseback the facility you choose depends on your particular needs. Consider your tax capacity and accounting needs, your cashflow and the asset to be purchased. It is important to seek professional advice before making the final decision. types of equipment suitable for asset finance cars light and heavy commercial vehicles unspecialised, home loans machinery plant IT hardware Benefits of Asset Finance the cost of the asset can be linked to the income it generates a straightforward facility to arrange the rental payments are agreed initially allowing simple cashflow management asset finance is non-cancelable providing the agreement is maintained correctly for more advice on commercial finance click here
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