Invoice Factoring
Invoice Discounting
Business Financing
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Business Financing
Other business financing services provided by invoice discounting companies
In addition to normal invoice discounting most discounting companies provide additional business financing packages. Nationwide Asset Finance Limited has the expertise to advise you on which business financing services most suit your company's needs.
Stock Purchase
Stock Purchase enables companies to finance stock-building against confirmed customer orders and is ideally suited for businesses with seasonal fluctuations.
A Stock Purchase facility enables prompt payment to be made to suppliers during the build up to the sales season, and supported by an invoice discounting facility incorporates funding right through to ultimate payment by the customer.
Trade Finance
You have a confirmed order from a credit worthy customer but lack the cash to fulfil it.
Trade financiers specialise in helping companies achieve the growth that is so often in their potential but beyond the scope of traditional financiers i.e. banks.
By paying your supplier direct or opening a letter of credit the trade financier can fund 80% to 100% of the cost of goods plus duty and Vat.
Trade finance facilities are complimentary to your existing funding arrangements and enable you to take on additional business, which would otherwise be lost.
Asset Based Lending / Structured Finance
Asset based lending and structured finance is the hottest sector of the invoice discounting market. Lenders have realised that they can add value to a customers requirements by looking beyond just the debtor book. By including a company's stock, plant and machinery and property they can provide much bigger revolving business lines of credit. By flexing the facility in this way advances up to 150% of debtors can be achieved.
This type of finance is particularly suited to:
- Management buy-outs (MB0)
- Management buy-ins (MBI)
- Acquisitions
- Mergers
- Re-finance of existing bank overdraft
- Turnaround situations
In these situations more funding can be released than through a conventional overdraft. In so doing there is less need to call on venture (or should that be vulture) capitalists for help. This ensures maximum retention of equity in the hands of management.
Typical advance levels are:
| Debtors | 90% |
| Raw Materials | 30% |
| Finished Goods | 60% |
| Plant & Machinery | 80% |
| Property | 60% |
The starting level for asset-based finance is £1m with transactions over £100m not uncommon. For larger deals (£5m plus) senior debt and mezzanine debt can also be provided. Amongst the limited number of invoice discounters who can provide total asset based finance solutions there is a keen appetite for this type of business and the costs are equally competitive.
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