Articles

When comparing the cash costs of invoice factoring the first thing to do is to identify all the potential costs of the facility offered. A decision based just on the headline costs of the service fee and interest on outstanding balances could prove very expensive. Therefore it is essential that all potential costs are identified.

Banks typically set & limit business overdraft levels based on a company's trading history, thus providing the advantage of a lump sum capital injection. This means that an overdraft is a backward looking, rigid way of financing company growth, with the worrying disadvantage that it could be withdrawn at anytime, especially in today's business climate. In direct contrast, an alternative business funding option is revolving debtor finance such as an invoice factoring or invoice discounting facility that grows with a company's sales day by day and is only constrained by the level of invoiced business transactions!

The short term bridging finance market is full of adverts that tell of loan completions within 48 hours or even 24 hours of application.

A typical maximum loan to value for a mortgage on business premises is 75% subject to all the usual lending criteria, credit checks etc, but sometimes that's not enough to secure the investment. Is it possible to exceed the normal lending requirements? Yes, is the answer, it can be done but only in limited circumstances, so let us cover the 4 main possibilities.