Posts

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.

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.

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.

Sweating your assets

Leveraging the potential of everyday business assets is just one way that cash strapped practices can generate the extra finances needed to grow or forge new paths within their industry. Find the right solution, and the right management company to handle it all for you, and a number of avenues can quickly open up that enable your business to function more flexibly.

Getting the Most out of Your Business Assets

According to the BBA, after a fairly stagnant period, it’s claimed that banks are beginning to loan more out to small and medium size businesses with over 30,000 loans agreed in the second quarter of 2015. For many businesses however, this may not be enough or there may be too many hurdles to overcome to access the finance. To such an extent, last year actual bank lending actually fell by some £400m.

As such, there are still many practices that go to their bank and get turned down for valuable financing, even when it is a relatively small amount. When that happens it can be difficult finding alternative sources of funding and a business can start to stagnate without the necessary cash flow. One avenue that’s proving increasingly popular is using your practice’s assets to secure a loan. You may be surprised how much you are actually worth.

Assets can come in all shapes and sizes, not just stock and infrastructure. For instance, your brand and logo is an asset and has a financial value as well as product and service developments and even written content. Your productivity and future potential is an asset too, though less tangible.

What your practice is worth today if it was sold is important. Whilst many very young practices may well have a negativity equity, others could have several thousands in previously unconsidered assets that can be packaged together and used to help get a loan.

How Asset Financing Can Benefit Your Business

Many practices require extra funding to meet short term and long term financial requirements, including partner buyouts and acquisitions as well as refurbishments and cash flow concerns. When the bank won’t agree to a loan it can get extremely difficult. The first thing practices need to do is identify the assets they have and then find how to leverage these.

At the Practice Finance Company our experienced advisors can help businesses find the right route to finance and secure a loan that not only matches and maximises your assets but also enables you to handle repayments. We’ve arranged over £3 million in funding for practices across the UK this year alone, helped by our access to private funding avenues. With the right financial team to support your business you can make your assets work harder and find you the right access to finance.

Portfolio Items