Cashflow finance

Without cash most companies will not survive.  Cash can be released from a company's assets using the techniques below.

Equity release A working capital facility for a new business venture for an existing company was financed by creating 2nd charges over commercial property with sufficient equity.

Invoice discounting & Factoring 1 A distribution company was given an invoice discounting facility with a limit of £2.5m. The debtor book included contras and export sales and one customer made up over half of the sales ledger. 2 Lacking resources to chase overdue invoices, a processing company needed a steady flow of cash and free itself from its credit control process by outsourcing it to the lender. The company was provided with a facility which would free up over £25k locked in unpaid invoices.

Payroll A food manufacturer with turnover of £8m needed additional working capital to buy equipment to expand production capabilities. A facility of £125k payroll funding was provided.

Sale and leaseback A food manufacturer needed £30k for a franchise opportunity.  The company owned £70k of equipment that could be sold and leased-back to the business to release part or all of the cash required.

Invoice discounting & Factoring explained

If you need to generate cashflow quickly, your invoices can be liquified using invoice discounting or factoring, providing you with up to 90% of their value in as little as 24-48 hours and the balance upon invoice settlement. 

If you prefer, your debtors need not be informed and you can delegate the administration of your sales ledger to the lender releasing time for you to spend on your business. 

As your business sales increase, you can raise increasing amounts of cash through these techniques, and even more to finance rapid sales growth. 

Credit risk can be transferred to the lender or retained.