Posts

PFC – Your one stop shop for finance

Imagine building a relationship with an account manager who has access to over 50 lenders and can arrange funding for pretty much every conceivable type of requirement a business owner will face during the course of their year.

At PFC that’s precisely what you get.

We haven’t grown over the last few years concentrating on one or two types of credit – we’ve grown by making sure we can offer multiple routes to finance for any SME business.

It can make our day challenging, veering from an Invoice Finance proposal to a personal loan, but we pride ourselves on being able to provide a multi-disciplined platform when it comes to business funding needs.

One account manager. Over 50 lenders. We can arrange the following:

Asset finance

Whether your company is in need of asset finance or asset refinance we can provide funding for all types of equipment for different sectors including both new and second-hand items. We offer seasonal repayment options too, as well as step repayments and deferred VAT for up to 7 years.

Commercial loans

If your company is in need of some capital, an unsecured business loan is a sure-fire way to get there. Our commercial loans differ from client to client, available for any purpose and any business sector. From start-ups to property developers, restaurant owners to manufacturing companies, our clients turn to us for short term emergency capital or longer term planned investment.

Our panel of lenders provides us with the options to arrange essential working capital in as little as 2 hours (for shorter term lending) or within a couple of working days for larger amounts with longer repayment terms.

Stock and Inventory Finance

Companies looking to increase their inventory due to seasonal shifts can access funding to cover the purchase. Security is taken on the inventory and funding is provided to the client allowing them to pay suppliers immediately (and possible benefit from enhanced terms from the supplier) and concentrate on shifting the new inventory. Ideal for companies who are keen to increase revenues and profits but lack the necessary capital to purchase the goods.

Stock funding is provided against existing stock and is a useful method of introducing working capital into the business.

Invoice Finance

Available to new start enterprises and established companies.

We work with top-tier invoice finance lenders, many utilizing the latest technology to provide incredibly efficient same day release of funds.

Working independently allows us to look at the detailed requirement the client has and try to identify the best funder to meet their specific invoice finance needs.

Vat and tax bill finance

With the rise in the number of late Vat and Tax payments that lead to hefty fines, more and more customers are approaching us to provide them with finance to pay these overdue or up-coming bills with loans from £5,000 up to seven-figures.

VAT funding is a rolling 3 month facility, and the tax funding is available for self-assessment, memberships or corporation tax and can be funded over 6,10 or 12 months.

Personal loans

From funding weddings to legal costs, or investing capital into the business, we can arrange personal finance for those in need of a loan, available amounts from £1,000 to £100,000. We don’t restrict our lending to home owners as we can consider tenants and those who still live in the family home.

No matter the loan or route to finance you decide to take, our friendly team here at PFC understand how daunting it can be for businesses and individuals to seek finance and that’s why we made it our duty to make the application process as straight-forward as possible. We dedicate you to only one account manager to deal with your application process and you only need to fill out one simple form with decisions from our 50-strong funding panel in a matter of hours, not days or weeks like other brokers.

If you’d like to discuss any of our finance options in further detail, please contact a member of our friendly team on 01829 738 799 to chat through your requirements today.

 

Renting vs buying pt 2: How to finance the future

There are many reasons why companies invest in new equipment – from replacing tired old existing kit to ordering new equipment to facilitate growth.

How to pay for this investment is the real issue.

When buying equipment businesses are often faced with cash flow challenges as finding a lump sum is not always easy. In such cases asset finance can provide a quick and realistic alternative by securing funding against this new asset.

It is not always right or necessary to pay all costs upfront as a Finance Lease or Lease Purchase can provide a more affordable answer, in line with the lifespan of the equipment.

It’s always a good idea to conduct a Cost Benefit Analysis before you invest in the equipment – this can help you identify the breakeven point (the point when the kit has ‘paid for itself’) which can be particularly useful in the manufacturing or engineering sectors.

This can also help in determining the length of the repayment term when you finance the equipment. A 5 year asset finance agreement might not be ideal for an item of kit that has paid for itself in a couple of years.

If the item is particularly high value or a market that needs testing for a business, leasing can provide a good solution.  There are two principal types, a finance or full pay-out lease or a residual value lease.

A finance lease offers a rental structure, that incorporates interest, but allows the lessor to return or replace the product at the end of the agreement.

A residual value lease effectively allows for regular payments that either pay for the item by the end of the contract or allow for a final ‘balloon payment’ to be made at the end with the company effectively buying the product at the end of the agreement.

Step leases are also an effective way of matching payments for equipment with income that the equipment may generate.

They work in a simple way in which the repayments are tailored to the business’ needs, for example if a new machine will take a few months to generate the required sales, it would make more sense if repayments could be scaled up as the equipment brings returns to the business.

We can even address seasonal repayment schemes for asset finance, with structured higher/lower capital and interest repayments suited to your spikes in seasonal sales.

Asset Finance fundamentally offers the business the opportunity to invest in new equipment without having to suffer the disadvantages to cashflow that an outright purchase will incur.

The types of asset that can be financed are too many to list! Most funders break them down into two types, Hard and Soft Assets.

This banding incorporates items of equipment that can range from plant and machinery to telecommunications to fixtures and fittings.

Soft Asset finance has seen real growth recently, with many of our top-tier panel funders happy to consider IT and communications equipment, shop fittings, office items, software and security (we have recently arranged £80,000 for CCTV towers for a new SME client) – most are even prepared to include the installation and additional intangible costs of the purchased item (up to a certain percentage of the overall cost).

Whatever is the right scheme for your business, at PFC we offer a quick, simple and effective route to finance.

With a team of experts to talk you through the varying tax and VAT implications associated with Finance Lease and Lease Purchase (Hire Purchase) and a panel of more than 50 lenders we can be sure to find the right route to finance and so that our client companies have the right finance to secure their futures.

For more information contact a member of our friendly team on 01829 738 799 and let us find the right route to finance.

Spring clean your finances for the new financial year

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.

The starting point with any financial spring clean is identifying how you are spending your time running the business and where your capital may be unnecessarily tied up.

One solution that is perhaps not being used as effectively by SMEs (as a way of accelerating cashflow) is invoice financing.  This is basically a way of improving working capital by releasing finance against unpaid invoices.  It is proven to improve cashflow and enables businesses to reach a position where all urgent or exceptional costs (like wages, investment in projects, buying additional stock) can be met without having to keep one eye on the overdraft or chasing payments on the sales ledger.  The facility can offer up to 100% (in some cases) of the value of the sales ledger and can quickly lift the pressure off a business owner’s shoulders.

PFC work independently with some of the UK’s most established invoice finance providers. With our team of experts, and a panel of lenders that include some of the best invoice finance underwriters, 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 access the finance you need.

Whatever the need is, make sure you get in touch today to see what aspects of invoice finance could support your business as you make a fresh start this spring.

 

>> http://pfcfinance.co.uk/contact-us/. http://pfcfinance.co.uk/invoice-finance/

>> http://pfcfinance.co.uk/business-finance-case-studies/

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.

How to Get Ahead With Your Debtors…

Every small business in the country will have experienced late payments at one time or another.  Fortunately, the issue is often short lived with customers paying up after a gentle prompt, however sometimes customers operate to different payment terms or may delay payment due to their own business issues which can have a negative impact on the cash-flow of the supplying business.

Any delays to payment can be hugely frustrating and have a negative impact on a business.  In the past, businesses may have approached their bank to extend their credit facilities or for a loan, however today more companies are turning to alterative lenders who are able to offer a broader range of funding options, with flexible and bespoke solutions to their individual needs exemplified by the Invoice Discount or Factoring facility.

Statistics from the Asset Based Finance Association suggest that alternative lenders are providing more funding to SMEs than ever before. In the first quarter of this year alone, SMEs raised £711m from the sector according to the ABFA, a 60% increase on the same period of 2015. The sector’s total lending to SMEs now stands at £19.3bn.

The increasing use of other types of business finance reflects a heightened awareness amongst SMEs that they do have funding options other than what’s available from the banks, with research suggesting that more than 75% of SME CEOs are now aware of options beyond traditional banking.

Industry data suggests that this is feeding through into take-up, for example, 12% of SMEs are already using invoice finance, while a further 46% say they would consider doing so if and when they need to raise finance.

The reasons that invoice financing are proving to be so popular is the speed in which they can achieve access to funds as well as the cheaper cost of funding and its simplicity. Additionally, the stress and time consuming nature of chasing payments from your debtors is taken over by the Invoice Finance provider, either on your behalf, or confidentially.

In fact, in most cases, PFC’s client that have taken up Invoice Finance facilities, often see a significant increase in turnover and profitability as they are given the chance to concentrate on growing the business and not chasing payments or dealing with extended payment days.

For these and other reasons, the Federation of Small Business and the British Chambers of Commerce have been keen to promote the option as one of the diverse range of financing options.

With uncertain times ahead and much change forecast for the economy, having access to alternative forms of finance can be the lifeline for many small businesses.  With access to finance and the rise of alternative finance options, let’s hope the frustrations of a small business owner are short-lived.

If you’re looking for access to finance, contact the team and let us discuss the options available to you.

SCAFFOLDING EQUIPMENT – IS IT BEST TO HAVE AND TO HOLD?

architecture-1541086_1920

Deciding whether it’s better to hire or buy equipment is a question faced by many businesses each day in the UK.  However, when the cost of financing the equipment massively outweighs the costs of hiring, it becomes, to use a cliché, a ‘no-brainer’.

 

With savings in the region of 25-50% on the monthly outgoings, choosing to finance the scaffolding equipment in comparison to hiring is starting to become a sensible option for a growing number of PFC’s scaffolding company clients. Factors such as the amount being funded, and the term of repayments (we can offer from 6 months to 60 months) will determine the saving, but the fundamental advantage is that funding the kit instead of hiring is not only cheaper, it is also a wiser use of your essential business capital.

 

Opting for the finance lease credit facility, as most do, will offer benefits such as accelerated tax relief and route to ownership of the scaffolding equipment at the end of the term. VAT is spread throughout the term, instead of being paid up-front, which is yet another way of strengthening your cashflow position.

 

More and more of the funders on our panel are agreeing to finance this asset, an asset which traditionally was hard to get funding for. By providing accounts, company bank statements, and a copy of the equipment invoice, the majority of our clients have successfully financed the investment into new scaffolding equipment, rather than continuing to hire.

 

PFC resident expert scaffolding financier (Harvey Peers) arranged over £200,000 of scaffolding finance in August; his clients, in addition to reducing their operating costs, now have more assets and value in the business which puts them in a strong position for onward growth and expansion.

How Invoice Financing Can Improve Cash Flow

It’s one of the main issues that B2B suppliers face, particularly SMEs and sole traders. When a product or service is supplied to another business and an invoice raised, there is generally a delay before payment is made. It can take on average 30 days before funds return to your business and can be reinvested, used to cover running costs or get more product out into the marketplace. In many instances, especially when in partnership with large corporations such as supermarkets, this invoice payment delay can be anything up to two to three months.

That’s a long period when valuable cash flow is stalled.

Obviously, this situation causes problems for small and medium sized businesses working on tight or limited budgets. Invoice financing is designed to help companies get over this problem. When an invoice is raised, financing can be taken out to provide immediate payment, rather than having to wait until the invoiced company pays up. Once that invoice is fully recovered, the loan is simply paid back.

Cash flow is important to all businesses but more so to SMEs and sole traders who generally have to compete within tight margins. Getting the right invoice financing in place to ensure that money is available when a business most needs it is part of accepted operating strategies nowadays. That means a business isn’t left on hold while they are waiting for payment to be received. They can implement growth strategies and deliver more products and continue to thrive rather than treading water and twiddling their fingers while the client account department hangs onto that invoice.

For business to business companies that rely on a flexible cash flow to compete in their markets, invoice financing is the perfect solution for the immediate release of finances. It allows them to introduce working capital, pay wages and focus more on the future.

At PFC, we have access to a range of funders and can provide invoice financing to businesses across a wide spectrum, from those that have been operating for a while to start ups that have less of a credit history. It’s not just about providing loans to cover these payments, allowing companies to continue to operating effectively. It’s also about building strong relationships that are designed to deliver the financing options many SMEs and owner managed sole traders are looking for to make their businesses more competitive.

Does your Company need Corporation Tax Funding?

Unlike other taxes where there can often be some leeway for late payments if a company gets into difficulty, when it comes to corporation tax, once the deadline passes, those surcharges and penalties start accruing and can have a massive impact. This can put many companies under pressure in the run up to the tax payment deadline and force them into difficult decisions when it comes to business development and ongoing operational performance.

While there are many ways for companies to reduce their overall corporation tax bill, there’s always something to pay at the end of the day. Finding a solution that spreads the cost over the rest of year can help relieve unwanted financial pressure, release valuable capital for further investment, and give your business the breathing space it needs to get over potentially difficult periods.

At PFC we provide tailored tax funding for businesses that allows them to meet their corporation tax liabilities whilst spreading repayments more equitably over a period of months. This reduces the impact of a potentially large one off payment to the Treasury and can have numerous benefits including:

  • Makes sure businesses avoid being late with corporation tax payments because funds, for whatever reason, are not available or tied up at that particular time.
  • It releases valuable capital that can be used for developing new avenues and making sure existing business strategies remain on track.
  • It can relieve short term cash flow problems by essentially extending your tax payment deadline and making sure your business has more money in the pot.
  • PFC offers a flexible way to cope with any tax funding issues. Our tax funding facility allows for tailored loans between £1,000 and £2.5 million paid back over a period of 6 to 12 months.
  • The change to a fixed monthly cost for your corporation tax bill means that you can better budget over the year. You can choose to do it as a one off solution for current problems or incorporate into your ongoing business strategy.
  • Access to fast track decisions at PFC means you don’t have to wait long for a decision and solutions can be agreed in around 48 hours.

How PFC works

We are a brokerage group with a vast amount of experience in the field of private loans for companies, helping them manage areas such as tax funding, subscription payments and insurance premiums among our other funding provisions. We do this by having a close working relationship with our private financers, providing competitive funding for businesses that need it.

Sourcing commercial funding that works for the business that is accessing it is a fine art and obtaining the right terms is something that takes a great deal of experience and industry know how. At PFC our focus is in finding the right solution that suits your business and not a one-size-fits-all proposition that fails to tick all your boxes. To find out more, contact our experienced and friendly team today.

Spread the Impact of your Partnership Tax Bill with Tailored Tax Funding

Partnership tax generally costs more as a whole than corporation tax and working out each member’s liability can be difficult at the best of times. This can affect businesses such as architects, lawyers and accountants who share a common cause but often operate as self-employed entities within the partnership.

Making sure everyone in the partnership is well equipped for dealing with the tax payments due in January can ensure your business runs more smoothly and everyone stays on track and can meet their commitments. Swapping a one of payment to the HMRC for tax funding, where you basically get a loan for the amount you are liable for and pay it over monthly instalments can relieve a huge amount of pressure on practices.

At PFC we offer tailored, private tax funding that helps businesses working through partnerships to spread their liability over a short term period of 6 to 12 months. Most businesses falter when faced with unexpected financial settlements such as tax bills and having a way to ameliorate that impact can make a huge difference to the day to day operation of all partners.

The Benefits of Tax Funding for Partnerships

  • It spreads the cost of tax payments across a longer period, making sure that partners don’t have to find valuable funds as the deadline for HMRC returns approaches.
  • It allows partners to know where their tax liability lies and how much they need to pay each month rather than trying to get the payment together at the last minute.
  • Some partners are better at dealing with cash flows and tax liabilities than others and introducing tax funding can make sure additional pressure isn’t put on their capabilities because of the failures of another member of the team.
  • It gives breathing space for the partnership that allows it to grow and develop especially at a time of year when business is naturally slower.
  • The loan can be made by an individual who is self-assessing, to make sure liabilities are covered, or by the partnership as a whole to ameliorate any unforeseen charges.

How it Works for Partnerships

At PFC we’ve got a fair deal of experience in dealing with all aspects of tax funding for corporations, self-assessors and partnerships. With access to private funding that can be tailored to individual needs, we can work with you to find the right solution that suits your business. Payments can be made either directly to the HMRC or to the partner or partnership concerned and repayments can be spread over 6 to 12 months.

Tax funding is available for small and large partnerships whether the bill is just a few thousand pounds or much larger. If you want a solution that makes it easier to pay your all-important tax bill, then contact our highly skilled and professional team today.

Portfolio Items