Most businesses are aware of the principles of Invoice Discounting and Factoring. In simple terms finance companies and banks will advance against invoices/debtors in order to improve the cash flow of your business. Typically they will advance 85% of the value of the invoice raised, paying the balance upon receipt of payment of the invoice. These companies will charge fees based on the amount borrowed together with a service charge for managing your account. The majority of small businesses operate their cash flow with these schemes, with their principal bankers holding the lion’s share of the UK market.
There are some excellent independent lenders operating in the UK and we have relationships with all of these. We are able to obtain best terms for our clients by having a deep understanding of the market at all times.
Less known, is that over the past three years new lenders have appeared who are more sympathetic to the situations the business owners find themselves in.
For example, lenders are able to “discount” single invoices rather than offer term contracts. There is trade finance available for companies with orders and contracts.
We are experts in this field and will offer best advice at all times as to what is the most appropriate and cost effective solution to your funding needs.
Beer & Young also specialise in placing private investors with businesses who need working capital funding but are unable to obtain it from their bankers or other lenders.