Slow Cashflow Problems? Accelerate into Spring by…

Speeding up your Sales Ledger with Invoice Finance

As spring fast approaches, there is no harm in giving your business finances an early ‘spring clean’, allowing a fresh start ready for the new financial year.

One solution that SMEs are perhaps often ignoring is invoice financing (Factoring and Invoice Discount).  This is basically a way of improving working capital by releasing finance against unpaid invoices.  It is proven to improve cashflow and allows businesses to meet critical inherent costs, from wages to VAT bills, servicing contracts or placing new orders with suppliers as they no longer have to wait for their outstanding trade debtors paying on time.  The facility can offer up to 90% of the value of the sales ledger (and in some cases up to 100% of the invoice) and can quickly lift the pressure off a business owner’s shoulders.

Imagine billing your client and instead of waiting up to 90 days for the cash to be realised you receive the vast majority of the invoice that day. Factoring, or invoice discount, streamlines your cashflow and frees up important time which can be better spent on growing the company.

There are some key differences between factoring and invoice discount, often driven by the companies’ turnover, or the history of the sales ledger performance, but a brief chat with one of our account managers can help you understand this in greater detail.

We work with a panel of lenders that include some of the best invoice finance underwriters (all members of the Asset Based Finance Association, or ABFA), meaning packages can be tailored to suit any business, of any size or age. Even if you’re an established business or a new start up, we can help you speed up your sales ledger.

For recent examples of invoice finance facilities arranged by our account managers, take a look at these links:

http://pfcfinance.co.uk/portfolio-item/case-study-confidential-invoice-discounting-facility/

http://pfcfinance.co.uk/portfolio-item/invoice-discount-case-study/

http://pfcfinance.co.uk/portfolio-item/invoice-finance-business/

 

THE ROUTE TO FINANCE

For start-up businesses and SME’s, it can be tricky to convince lenders to grant you funding especially if your business hasn’t taken off the ground just yet or if you’re fairly new to the business and are already looking to expand. Often, if the principal bank does agree to finance the business, they will look to bolt-on far reaching security comprising debentures and will sometimes only agree to the finance if they can dilute their own funding with any of the available grants that exist for small to medium sized companies. This is very time consuming and laborious and certainly doesn’t help the client if they need fast access to decisions and finance.

We’re here to provide you with access to finance where others may say no. Together we can decipher what your best financing option would be, so that we can then put it forward to our panel of more than 45 lenders to find the best solution for the individual or business.

With our many available routes to finance you may never need to go to your bank again to ask for specific funding. PFC very rarely fails in successfully sourcing finance for our clients.

We listen to every business and we look at the size of your company, the owners and how much you have estimated that you want/need to borrow, so that we can work out ideal repayment terms and identify types of credit available.

In 2017 we have arranged an eclectic mix of funding already, for small sole traders up to multi-million turnover incorporated businesses.

Five and six figure VAT and tax loans (incredibly useful for ring-fencing essential cash within the business), single invoice finance (a few of our clients have provided current outstanding invoices which we have been able to get funding against to inject working capital into the company but without the need for entering into long term invoice financing), personal loans (many small business owners find this an ideal and competitively priced method of introducing capital into the business), asset finance (commercial vehicles, scaffolding and IT are some of the equipment we have arranged asset finance for so far this year), invoice finance and inventory funding (large major restructuring for a plant hire company, we were able to instruct a top-tier panel funder to roll out a new invoice finance package supported by a funding line for their stock) and many working capital loans.

In most instances, with a couple of items of supporting information (management accounts, last full filed accounts, and perhaps a few months business bank statements) we can propose to our chosen lender and obtain the approval within a few hours – this means from proposal to funds being paid out can be completed in as little 48 hours, and occasionally in the same day, depending on the type of finance applied for.

If this all sounds too daunting, don’t worry. You can always call us to walk you through the process and assist wherever possible along the way. If you’re thinking of borrowing to improve your business be it a small refit or a full-scale expansion, don’t hesitate to give us a call on 01829 738 799 or send us an email: enquiries@pfcfinance.co.uk.

New Year, New Credit – Getting a fresh financial start

After months of gift-buying and festivities, the Christmas cheer is slowing down. Unfortunately, for most of us, that means putting down the mulled wine and returning to the 9 – 5 lifestyle.

As everyone knows, with New Year comes New Year resolutions. For some, it may be sticking to a strict, no junk food diet, or increasingly your weekly exercise regimes, but for the business owners amongst us, our resolutions may be more finance focused.

Whilst the economic burden of Christmas may be over, upcoming finances cannot be ignored. With the January HMRC online tax return deadline looming, as well as any outstanding company payments, it’s time to sit down and work out the maths.

Whether 2016 proved to be prosperous or unsuccessful will vary from business to business, but regardless, 2017 offers the opportunity for a fresh start. Through organising your finances prior to the New Year, every business will know where they stand in terms of profit and funding objectives. With this in mind, by this time next year, you can look back knowing that all your hard work has paid off.

At PFC, we understand that finance is not so clear cut and that organising your finances may be more stressful than creating a simple spreadsheet. However, we also understand the ways in which easy, flexible finance access can transform a business, which is why we’re here to help your enterprise start afresh. With a number of different financial schemes, we can ensure that 2017 will start as it means to go on.

From asset finance and commercial loans to invoice and inventory finance we provide a range of finance options to suit everyone, and with a team of dedicated lenders, we promise that each individual will receive a scheme tailored to their specific needs. Having worked with every sector, no financial problem is too overwhelming for us, and the success of our services has been evidenced time and time again.

If you need a fresh financial start, then get in touch today. We can provide fast, flexible and competitive rates from an unrivalled lending panel, comprising many of the top tier funders and niche specialised SME lenders, that all starts with a simple email. We’re here to help. Start 2017 with a new financial outlook, so that your business can grow to its full potential over the course of the next year.

Beat the January Tax Bill Blues

With the pressures of Christmas, it’s easy to forget about what might be due in January like filling out that all-important HMRC online tax return and paying any tax you owe for the year.

In the UK, 4.79 million people are registered as self-employed and are required to fill out a self-assessment tax form every year before the online deadline of 31st January. Many will have an idea as to what the figure will be, but a few may well realise the bill is unexpectedly higher than planned.

Either way, funding the January tax bill is proving to be an invaluable method of protecting cashflow for business owners.

PFC works with a panel of more than 30 lenders to offer customers fast and flexible access to finance. The team is able to assess an individual or businesses requirements and find a route to finance where other providers may fail. Some payments can even be processed in under 2 hours.

Customers can finance their tax bills over 6 or 12 months, providing essential budgetary advantages as they can spread the cost of paying the HMRC.

Get in contact if you would like to speak to one of our experienced consultants and understand how we can provide access to finance and help you beat the January blues.