COMMERCIAL MORTGAGE AND LOAN INFORMATION PAGE

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ASSET FINANCE & LEASING

Suitable for established businesses with a proven profit and credit record we are able to quickly find the asset finance your company/business needs or you can purchase it from a reputable supplier!

The most common form of asset finance is hire purchase/lease purchase. This allows companies and businesses to borrow up to 100% of the purchase price. Repayments over 1 - 7 years.

We can help arrange asset finance from £10,000 up to 1 million but with strong accounts there is no maximum limit we can source for your business.

By applying through us we will start by searching the main prime lenders to ensure that we can offer you a rate that is amongst the lowest, if not the lowest, in the sector. We do not charge a fee for this service, we are paid by the lending bank/company.

What can be leased or financed through Hire Purchase?

We help clients find leasing finance for the following types of assets and equipment:

1) AIRCRAFT FINANCE
2) AGRICULTURAL EQUIPMENT
3) CAR FINANCE
4) COMPUTER HARDWARE AND SOFTWARE
5) INDUSTRIAL MACHINERY
6) MARINE FINANCE
7) MEDICAL EQUIPMENT
8) OFFICE FINANCE
9) PLANT
10 ) PRINTING EQUIPMENT
11) RESTAURANT/PUBLIC HOUSE FITTINGS
12) SHOP FIXTURES AND FITTINGS
13) TELECOMMUNICATIONS EQUIPMENT
14) VEHICLES (INCLUDING HGV)
15) ANY OTHER ASSET WITH A RESALE VALUE.

Hire Purchase/Lease Purchase has the following benefits:

1) Ability to claim a writing down allowance throughout the term.
2) Leasing releases working capital for expansion and development.
3) Equipment lease packages can be arranged with more than one supplier.
4) Claim the VAT back on the rental payments.
5) The asset appears on your balance sheet.
6) For cars we are able to help source the vehicle for you or you can choose your own vehicle from a reputable dealer.

Other types of asset finance include a Business Loan and Other Leasing Products see below.

Very fast to arrange!
Factoring and Invoice Discounting available!
No security required! No hidden charges!
We search several lenders for the best rate!
Lower rates than other finance e.g. loan/overdraft!
Increased funding facility as your business grows!
No need to chase debts this is done for you!
No penalties for your customers paying late!
No legal costs to pay if your customers never pay!

FAQs

How much does it cost?

There is a service charge of between 2 - 3% of the sales finance and an interest charge for the cash advances. This is usually a less expensive way of borrowing compared to an overdraft or business loan and the lenders that we deal with will not require any additional security in the form of property.

When do I receive the cash advance?

Normally you will receive your funds within 24 hours of issuing an invoice once the facility has been approved. The benefit of factoring is that your extra finance requirements can grow as your business grows.

How much of the invoice value can be funded?

This all depends on what sector your business operates in. Typically the amount that can be advanced is 80 - 90% of your invoice value. The balance would then be paid to you when your customer pays, less a fee and interest.

The benefit of this type of finance is that the lender can offer a whole package and take over your debt collection. The lenders that we deal with do not charge you any penalties if your customer does not pay on time or if the lender has to take legal action against your debtor. With the invoice financing that we help to arrange there is no need to worry about your customers paying. All of this can be managed for you saving you time and money.

Invoice discounting or factoring?

Both of these are a form of invoice financing. Factoring includes a full sales ledger service management and debt collection service that is disclosed to the customer. With invoice discounting the sales ledger management i.e. the debt collection remains your responsibility. This type of invoice financing is not disclosed to your customers.

Factoring is usually more applicable to smaller business and larger businesses tend to favour invoice discounting. The choice is ultimately yours though.

Can I get protection against customer that do not pay?

You certainly can. This is included in the 2 - 3% service charge that is payable on all advances. By having this facility it means that you do not have to worry if your customers do not pay you. The lender will take over the process of recovering the debt for you. This saves you time and money to run your business. This is sometimes known as non-recourse factoring.

Do you charge any fees for your service?

We are a broker and we do not charge you any fees for matching your type of business with a suitable lender.

All lenders will charge a fee for their service. This is used to cover the administration of collecting payment from your customers and recovery of any bad debts that may occur. There is also an interest charge for any funds that you draw. Invoice financing is still usually a less expensive way for business to borrow compared to the conventional method of a loan or overdraft.

INVOICE FINANCING AND FACTORING ADVANTAGES

Instant cash of between 80 - 90% of your issued invoice value within 24 hours.

Sales ledger management and debt collection. The lender does all of the debt collecting for you saving you time and money to run you business.

Usually invoice financing works out less expensive when compared to more conventional lending of a loan or an overdraft. You are also receiving the extra service of sales ledger management and debt collection.

NO SECURITY! The lenders we deal with will not need a charge over your business or residential property.

HOW INVOICE FINANCING AND FACTORING WORKS

The lender fully manages your sales ledger and provides you with credit control and collection services of all your outstanding debts unless you prefer to still retain this process internally. Either way, you will receive an advance of between 80% - 90% of the invoice value within 24 hours of issuing your invoice. The balance, less a fee and interest, is then paid to you once your customer has paid.

There are two costs involved with invoice financing. This first is a service charge of between 2 - 3%. This is for managing your sales ledger and also for debt collection and the second charge is interest on the advance. We deal with lenders that do not charge you any penalties for late payments by your customers.

FACTORING

Factoring is the sale and purchase of accounts receivable. It is a method where the lender can pay an invoice which is due to your company as soon as it is issued, instead of having to wait for your customer to pay you over a period of time. Factoring allows the lender to take over the invoice and pay you up to 90% of the invoice value. When the invoice has been paid by your customer to your lender, you will receive the balance - less interest and their fees.

Factoring completion in approximately 24 - 48 hours. Factoring allows you to set up an account with a factoring lender to provide cash against outstanding invoices. Each time you issue an invoice for services, goods etc., you submit it to your factoring lender for immediate payment instead of waiting 30 - 90 days for payment from your customer. Your customer then pays the invoice direct to the factoring lender.

The benefits of factoring are as follows:

Suitable for business of all sizes including start-ups

No security required and no hidden charges.

Full ledger management factoring provided.

Credit checking can be provided.

No penalties for your clients pay late.

No legal costs to pay if your client refuses to pay.

INVOICE DISCOUNTING

Invoice Discounting is a form of invoice financing that is usually best for larger businesses. It is identical to factoring except that the sales ledger management i.e. the collection of debt remains your responsibility. The service is undisclosed to the customer. So your customers will never know that you use invoice financing.

Is invoice discounting right for you?

If your company is large enough and you have staff to collect your outstanding invoices (debt collection, general sales ledger management etc.) you will be looking for invoice discounting as an extra service for your company. In these circumstances this would be better for your business than factoring.

As a general rule your company must have an annual turnover of more than £250,000 with its own accounting, to be suitable for Invoice Discounting.

Invoice discounting is a non-disclosed or recourse finance. This means that your customers are not informed about your business relationship with an invoicing lender.

The benefits of Invoice Discounting:

No more cash flow problems, use your time now to grow your business.

Receive your cash straight away, while letting your customers still enjoy credit terms.

Make better returns on your capital.

With the extra cash, get better deals from suppliers and even credit deals.

INVOICE DISCOUNTING PROCESS:

1) Set up by the invoice discounting lender is very simple and most funds are made available within 24 hours from receipt of your invoice.

3) The lender credits the invoices to your account and makes funds up to 90% available usually within 24 hours.

4) You can then instruct your invoice discounting lender on how much of your account (funds) your company requires. You only pay interest on the amount of finance you draw against a particular invoice.

5) Your invoice discounting lender then pays you the required sum.

6) Finally when your customer pays, the invoice discounting lender will send you the balance, less fees and interest.

7) Your invoice discounting lender will keep you informed of your balance in your account

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OTHER LEASING PRODUCTS

FINANCE LEASE:

Finance Lease is a rental product designed primarily for VAT registered business users with a clean credit record.

Usually, 3 payments are made in advance (similar to a deposit) followed by equal monthly rentals over a 3, 4 or 5 year period.

At the end, the customer can :

1. Sell the asset to an independent third party and receive a stipulated percentage of the sale proceeds.
2. Extend the term by paying a nominal Secondary Rental payment each year.
3. Return the asset to an address designated by us.

OPERATING LEASE:

This type of finance is most suitable for specialized assets and vehicles of higher value. A residual value to reduce the rentals is built in, thus helping cash flow and making 'off-balance sheet' funding possible.

Key features and benefits:

If you prefer to own your asset at the end of the term see our section on Lease Purchase.

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SMALL FIRMS LOAN GUARANTEE

Account Highlights:

Businesses can get loans despite a lack of track record or security.
Loans from £25,000 - £250,000 for businesses trading for 2 years or more.
Loans from £25,000 to £250,000 for businesses trading under 2 years.

How does this works:

We, you the customer and the lender agree a viable business proposal and then apply to the DTI for a guarantee. The DTI (Department of Trade and Industry) will guarantee up to 75% of the loan. In return for this guarantee of funding from the DTI, an interest premium of 2% is paid by you to the DTI. This is on top of the bank's lending rate.

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CONTRACT HIRE

This form of finance is where we will source the vehicle for you and then allow you to drive it under a contract. The drawback is that unlike hire purchase, with contract hire you will never have the opportunity to own the vehicle. It does however, allow you to drive a new or nearly new vehicle for usually smaller monthly payments than a hire purchase agreement. As you will not ever own the vehicle you just give it back at the end of the term, usually 24 - 48 months. You may then take out another contract hire agreement if you wish. This option will ensure your business always has a new car to create the right image.

Payment of the "Road fund licence" is usually included in your contract hire payments and you can also opt to have a maintenance agreement added to your monthly payments.

Online Contract Hire Application

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BUSINESS LOAN

- No maximum amounts. Usually from £25,000 to several million.
- Interest only repayments for the first year are available.

USE A BUSINESS LOAN FOR:

- Acquisition, expansion/renovation of premises, retail, industrial and pubs.
- Taking an interest in a professional partnership or business.
- Injection of capital into a business.
- Development finance.
- Consolidation Finance.

Business loans are for any amounts over £25,000. Additional security will always be required where more than 50% of the project cost is required.

Business Loans up to 85% of the building value are available when purchasing a property. 100% is available with substantial extra security.

Apply for a business loan

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HIGH SPEED BRIDGING LOANS

A bridging loan is a short term loan that is secured on property and can be used for a host of reasons:

1) Complete the purchase of one business property before the sale of another.

2) Auction purchases.

3) Commercial Property Development.

4) Land Purchase.

5) Buy to Let.

6) Fast completions.

7) Capital raising to clear an urgent requirement.

8) Temporary funding for new start business.

9) Non status loans sometimes available.

The various products available can allow for a very quick completion.

Terms 1 month - 12 months.

Typically we can help arrange bridging loans for any amount between £25,000 and £5,000,000. Usually these loans are restricted to 70% of the value of any property owned in England and Wales less any outstanding mortgage. We do not charge you a fee for our services but any lender that we submit this application to will charge an arrangement fee and monthly interest. This is usually between 1.5% and 2% of the loan amount per month.

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CONTRACT PURCHASE

This type of finance is similar to contract hire but you have the option of buying the asset at the end of the rental term.

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FACTORING AND INVOICE DISCOUNTING

With this form of finance the lender can pay an invoice that is due to your business from your own customer. This enables you to have your invoice paid as soon as you issue it instead of allowing your customer time to pay. The lender typically pays you a value of up to 90% of the invoice value. Then once the invoice is paid by your customer, the lender takes their fee and the interest for the advance and then pays you the balance.

Factoring notes:

1) Suitable for businesses with a turnover of over £50k.

2) Invoice collection provided.

3) Service usually disclosed to your customer.

4) Full ledger management provided.

5) Credit checking can be provided.

Invoice Discounting Notes:

1) For companies with a turnover over £500k.

2) Invoice collection not provided.

3) Service not usually disclosed.

4) No ledger management provided.

5) Credit checks are not normally provided.

This type of finance is suited to companies that are looking to expand but typically have to wait 30 days or more for payment from their customers.

So if you have accounts receivables and you are looking to increase your cash flow and even if you are a start-up company, let us try and find a factoring lender that can help you.

Factoring Application online