Loans not an option ?
Today we have the priviledge of sharing a guest blog from Mr Jonathon Willder of www.catalyst-finance.com which may be able to offer a solution.
Single Invoice Discounting – helping you with Cash Flow .
Effective cash management is crucial to your business success. Access to cash when needed has been satisfied traditionally by a number of funding sources, be it a bank loan, a bank overdraft or a factoring /invoice discounting facility. And asset finance providers have done their bit too, helping you to match the costs of running your business with the revenue streams thus generated.
And now, just when the banking world seems to be retreating, a new cash flow option has arrived in the form of Single Invoice Discounting. So when your bank’s computer says “no” to your overdraft or loan request, or where the terms of a full factoring / invoice discounting option prove inflexible or inappropriate, there is a new, simple and flexible option available to you.
If you have a debtor due to pay in, for example, 30 days time but you have need for cash in your bank before then, why not sell that single invoice and receive up to 90% of the invoice value now to enable you to access cash now? Then, when the invoice is paid, you will receive the balance of the invoice less an agreed fee. There are no arrangement fees, no exit fees and there is no contract period. You simply pay for the money advanced for the period that you need it.
Single Invoice Discounting
•a simple, quick and flexible product to solve short term cash flow problems
•transparent, easily controlled costs – no “pre-transaction” charges
•available to all sorts of business whatever stage of development
•no industry exclusions (including construction)
•no pre-requisite for a strong balance sheet or a long history of successful trading
•no ongoing contractual obligation
•up to 90% advance against individual invoices or groups of invoices
•one-off, repeatable transactions
•ideal for businesses with lumpy/occasional need for cash flow support
•available to businesses where bank unwilling to increase exposure
•very low maintenance/reporting requirement
•asset sale so “off balance sheet” – never a loan
•no set-up, arrangement, maintenance or any other fixed costs
•all charges rolled into a single percentage charge based on amount advanced
•daily calculation of charges
•competitive rates vary according to circumstances
•a pay-as-you-go facility which only carries a cost when money is out
•initial account set-up normally completed in less than 5 days (no cost)
•individual transactions completed within hours
•Multiple drawdowns and early redemption permitted (at no extra cost)
For further information on this subject please contact: