Asset finance case history
We were approached by an engineering company looking for asset finance to raise funds against their existing machinery. They had approached us after being told by their bank manager that they would only help subject to a second charge on the family home.
The equipment that they wanted to refinance was pretty standard CNC machinery conservatively valued at £100,000 upon which the company needed to raise £30,000. The company already factored their debts with the same bank's subsidiary yet they were still unwilling to finance the machinery without severe penalties in the form of additional security
Having approached us it took just over a week for a deal to be done and the funds in the company's bank account.
Factoring
Factoring is now considered to be mainstream lending and has replaced the traditional bank overdraft in many cases but unlike other forms of funding, factoring includes a large element of service and whilst one might think that all factors are the same the truth is very different with many of the major players offering a very poor quality of service that is as likely to hold back their clients' growth as it would advance it.
As we have some very real concerns about the way some of the well known factoring companies operate we have set out some of the pitfalls including details on selecting the factoring company and why the cheapest factoring quote often works out more expensive in practice.
Invoice Discounting
Invoice discounting is currently being used by almost 14,000 companies generating combined turnovers of nearly £115 billion and it is this method of invoice finance that is experiencing the most growth at the moment. Our reservations about the activities of some invoice discounters are as valid as in factoring and we would be grateful if you could click on the link to see our areas of concern about invoice discounting
Trade Finance
Trade Finance is an area of business funding that co-exists alongside bank overdrafts, factoring and invoice discounting providing specialist finance to facilitate trade and you can read more about the types of facilities that we can arrange by clicking on the link for trade finance pages
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