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Cash Flow Finance

Invoice Finance companies will typically not provide finance to companies in the construction industry that raise applications for payment. However, at Funding Solutions we have been finding finance for such companies from the very outset. Clients of ours include scaffolding firms, tiling contractors, roofing contractors and various other construction related businesses. If you are looking for finance against applications for payment then give us a call.

Part of this is because they cannot actually take assignment of an application as it is not a legal document whereas an invoice is.

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Cash Flow Finance

There are a few finance products that can be described as cash flow finance. These are typically invoice discounting, factoring, trade finance and overdraft facilities.

Overdraft facilities secured by way of a debenture have become almost impossible to obtain from banks without additional security. The reason for this relates to a legal case – Natwest v Spectrum Plus Ltd

Factoring and Invoice Discounting are often referred to as invoice finance.  These facilities are readily available to businesses that sell on credit terms to other businesses. Invoice Finance is provided by the high street banks and also an array of independent providers.

Trade Finance typically facilitates imports and exports. It can provide a valuable source of finance but can also protect both customer and supplier as it ensures that funds are released to the supplier but only when the right goods in the right quantity of the right quality are provided at an agreed point.

By combining trade finance and invoice finance if you have a confirmed order from a credit worthy customer you can fund the entire trade cycle right from customer order through to the customer paying.

It is also important to consider how else you can improve cashflow. Solutions include:

  • negotiate with debtors for quicker payment terms
  • effective credit control – can you improve systems or outsource this function
  • negotiate longer credit terms with suppliers
  • can you reschedule any loan agreements to reduce monthly payments?
  • sell any unused assets such as machinery and vehicles you don’t use
  • can you sub let and part of your premises?
  • can you reduce your wage bill?

Cheap factoring is available from a variety of providers however everything is of course relative. When looking for an invoice finance facility it is important to remember that in some cases the most expensive provider can be 3 times more expensive than the cheapest provider.

It is also important to remember that good deals become available from lenders from time to time and as such the cheapest lender will depend on when you are looking. It is also important to remember that the cheapest factoring provider will also depend on the unique characteristics of your business and it’s factoring requirements.

Smart factoring quotes understand the market and monitor it’s changes. On that basis we can save you time doing research and can also save you money by ensuring the most competitive factoring lenders are introduced to you.

Factoring in Scotland is readily available for businesses selling to other businesses on credit terms. If you are looking for a factoring facility in Scotland it is worth visiting the Smart factoring Quotes website.

Scotland is serviced by several factoring companies such as RBS, Lloyds, Clydesdale, Aldermore, Close and Bibby. There are also other invoice finance companies that can service Scottish clients. Choosing the right company for your business is however the biggest challenge.

Most factoring companies in the UK are happy to provide invoice finance facilities in Scotland if the entity is a registered company in England as there is no difference to funding a company in England. However, I understand issues arise if the company is a Scottish registered company. I am told the issue relates to registering debentures.

If you are a Scottish registered company you still have a choice of lenders beyond the Scottish banks. If you are a company registered in England then your range of choices is much wider.

If you are looking for Factoring in Scotland it is worth contacting Smart Factoring Quotes to see what your choices are.