Scheme

Financial benefit

When is it useful

Avge requirements

Avge industry costs

Action

finance review

ensures maximum overdraft facility is being gained from the security held.

when limited cashflow restricts growth and expansion.

reasons for extending facility and evidence to support them.

charged for extra monies borrowed at overdraft rate. admin fee for increasing facility.

liaise and negotiate with the bank.

factoring

money available from sales within 48 hrs. cuts out bad debts. save money on admin. cash injection at switch on.

finance needed for growth is tied up in unpaid invoices. waste time chasing late payers.

business to business credit. no minimum turnover. Start ups welcomed.

service fee 1%-2% of turnover. finance fee 2%-3% over base rate only on money used.

analyse requirement, recommend and introduce suitable supplier.

invoice

discounting

money available from sales within 48 hrs. up to 80% of approved debts paid at switch on.

finance needed for growth is tied up in unpaid invoices.

business to business credit. well managed sales ledger min t/o £100,000.

service fee less than 1% of t/o. finance fee 2%-3% over base rate only on money used.

analyse requirement, recommend and introduce suitable supplier.

leasing

finance the cost of an asset over a period time. repayments are normally 100% tax allowable.

need to make capital acquisitions but don't have the security for a term loan, or any other funds available.

2 yrs profitable trading. good business credit rating.

repayments approx 4% + APR over base rate dependant on underwriters assessment.

analyse requirement, recommend suitable supplier and process the application.

sale and lease

back

cash boost, the original price you paid for an asset is paid to you. repayments are normally 100% tax allowable.

need to raise lump sums of capital but don't have the security for a term loan, or any other funds available.

3 yrs profitable trading, good record of credit and proven ability to repay.

repayments approx. 5% + APR over base rate dependant on underwriters assessment.

analyse requirement, recommend suitable supplier and process the application.

property backed

lending

economical method to raise money in the case of large amounts.

buying property, buying another business, other large investments.

a property to borrow against. 3 yrs accounts and other supporting evidence.

admin fee 1% finance fee 1%+ over base rate (variable). 3%+ over base rate (fixed).

analyse requirement, recommend supplier and process application.