Solutions for working capital management
Do you have money tied up in invoices or other assets? Our solutions can release cash to help you run and grow your business. We have experience across all sectors and industries, and our experts will guide you on the best options for your business and goals.
You can release up to 90% of the value of unpaid invoices through our Invoice Factoring and confidential Invoice Discounting services. It means that your business will receive an immediate cash injection, often within just 24 hours, and you avoid cash flow problems because you no longer have to wait months for debtors to pay you.
Invoice Factoring is for businesses with an annual turnover of more than £50,000. You can effectively outsource your sales ledger, monthly statements and payment reconciliation to us, freeing up your time to concentrate on your business. Because we take care of collection, you don’t have to chase customers for late payments.
Invoice Discounting is a confidential service for businesses with an annual turnover of more than £250,000. With Invoice Discounting, you continue to manage your sales ledger, invoice raising, monthly statements, payment reconciliations and credit control processes. It is easy to implement and no major changes are required to your existing finance systems.
An additional feature of invoice finance, Debtor Protection provides low-cost, easy-to-manage protection if a customer fails to pay. Your business will be protected for up to 90% of a bad debt, excluding VAT. Debtor Protection will give you greater confidence to trade in the UK and overseas, and it’s a good option if you sell to other businesses on unsecured credit terms and expect your annual turnover to be £200,000 or more.
Asset Based Lending
Your assets can be used as security to raise funds. You can increase your working capital by unlocking the value from a wide range of assets, such as stock, plant and machinery, property, and debtors. Asset Based Lending is available to businesses with an annual turnover of £10m plus and works alongside an Invoice Discounting facility to provide funding secured against your assets. This form of lending is popular with businesses seeking growth, and is an alternative to more traditional funding.
Restructuring, mergers and acquisitions, and management buyouts are examples of how asset-based lending can be used. Key benefits include equity protection, as funds are raised without sacrificing equity, and scalability and flexibility. Finance can grow in line with your business, and you can manage cash flow fluctuations by raising funds from assets not usually permitted as security for traditional loans.
Perhaps you want to invest in new machinery to drive growth, or you need better automated systems to increase productivity. Asset Finance will allow you to make a wide variety of purchases without impacting your working capital. We have two funding options: hire purchase and finance lease.
Hire purchase is for those who want full ownership of the asset at the end of the finance period but don’t want to make a large one-off payment. Finance lease enables you to rent and use an asset without having to buy it. We will purchase the asset and lease it to you for regular rental payments over an agreed term. Typically, rental payments cover the majority of the cost of the asset plus interest. When the asset is sold, you receive most of the proceeds.
Asset Finance is only for UK-based businesses with an annual turnover of more than £50,000.