Working capital finance solutions offer businesses the opportunity to improve cash flow. The world of commercial finance and asset-based lending (ABL) can be complex however. This is especially the case with products, terminology and contractual interpretation varying from lender to lender.
Below we explain some of the key points and how it can help your business.
What are the benefits of arranging working capital finance?
- Up to 90% of outstanding invoice value can be advanced within 24 hours
- Flexible lending – funding increases in line with your growth (UK and Export)
- Confidentiality – lenders can offer a completely confidential service – your customers don’t have to know you have a facility in place
- Lenders allow you to manage your funding at all times
- Sector-specific finance is often available
- Structured ABL – funding for management buyouts/management buy-ins
- Trade Finance & Supply Chain Finance Solutions
What are my options when it comes to working capital finance?
Our specialists can advise on a number of aspects of working capital finance.
Invoice Finance
This is an effective way of quickly accessing a proportion of the value (up to 90%) of your invoices. Effectively, a business ‘sells’ its invoices to the lender in return for accessing cash at the point at which products and services are sold. Specific sector-based offerings are available, as is the ability to arrange finance for selected invoices only.
Structured ABL
This generates a higher level of funding by unlocking the maximum value tied up in the combined assets within your business. This can include debtors, inventory, plant and machinery and property. Additional forms of funding can be structured in addition to this, such as top-up loans which can help to drive growth.
Trade Finance
This is supply chain finance with various options. It enables the purchase of goods from overseas where you’re otherwise unable to obtain credit from suppliers.
How to make working capital finance work for you
Typically, you will need to ensure that your management accounts are up to date, that you make available current detailed lists of debtors and creditors and you might also need to provide up-to-date projections before an expert can consider your application.
Please don’t hesitate to get in touch to discuss working capital finance with PKB. Our experts have many years of experience and success when it comes to advising businesses across a wide range of sectors.
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