28 May 2008

Unsecured Business Funding for as long as you need

It is now possible to obtain unsecured funding for company payroll, PAYE and NI. The specialist lender who provides this service gives 60 day rolling credit on your gross monthly payroll, with a provision to allow for growth.

It is a well know fact that lack of cash flow plays a significant part in holding back the growth of small and medium sized businesses. Its not that you don't have a steady and reliable income. It's just some customer's don't play as promptly as they should and of course, the one payment that has to be made each week or month is the payroll.

The key benefits of Financing Payroll for your business:No security required by company directors The funding appears as a normal trade creditor on a company's P&L, enhancing its credit rating It can be used alongside other traditional financial solutions including factoring, invoice discounting and overdrafts It does not impact on an organisation's secured funding arrangements.

There's no set up fee A flat rate on-going monthly facility fee An interest rate of base plus 3% on the outstanding balance. To qualify qualify for Financing Payroll Funding your company must have a trading history of at least a year and an annual turnover of more than £100,000 and have 5 or more employees. The product is most effective where a company is looking to expand or level cash flow peaks and troughs. The system offers a fast and flexible form of unsecured funding. For a number of our new clients this has meant immediate access to a new funding line of between £25,000 and £125,000.

Clients who have already gained assistance of financing payroll: A plastics manufacturing who applied for a facility of £50,000 per month. They were accepted on 60 day credit terms, base plus 3% interest charge on the outstanding balance and a monthly facility fee of £635. A firm of architects looking for funding of £30,000 per month. They were processed within 3 days and accepted on 60 day terms, base plus 3% interest on the outstanding balance and a monthly facility fee of £400 per month.

A serious alternative to Business financingFinancing payroll system is totally unsecured funding and will lend equivalent to the payroll including the PAYE and NI costs over typically a 60 day period. The Lender ask for no Personal Guarantees, Charges, or Debentures on assets. In fact they only show up on the P&L account as a normal trade creditor

18 May 2008

Now is the time to take Commercial Advice

Over 70 per cent of all residential mortgages in the UK are arranged through Brokers and in some sectors this figure is even greater however Business Customers are still in the main talking directly to their bank to sort out their commercial finance needs.
In the US, 80 per cent of commercial loans are arranged through brokers. In the UK, about 80 per cent of commercial loans are sold directly by lenders with only 20 per cent being arranged through Brokers.
Business Customers needing a commercial finance advice including a commercial loan or mortgage or other business finance product should find that an impartial finance broker has a lot to offer them by way of a professional service, delivering quick results and saving them time that would be better spent in their business rather than trying to source finance.
Commercial mortgage rates are rarely set in stone, unlike domestic and Buy to Let mortgages. Therefore each individual mortgage is priced to match the borrower's personal circumstances. When a business customer has establised a relationship with a bank they start taking advantage of that relationship because they know that arranging a commercial finance solution such as commercial mortgage, loan, factoring deal is time consuming and therefore they offer you a rate which has has no incentive.
If a business owner wishes to obtain the best deal in the market place then they need to commit time to researching the numerous commercial lenders that are in the market place and understanding the best source of raising business finance, understanding the terms and conditions of the product in the market together with the lenders’ processing requirements.
For Commercial property investors, it is important to consider the potential of a Business remortgage. Like residential mortgages, commercial mortgages can be refinanced to take advantage of more favourable terms, or they can be re-mortgaged to establish a line of credit to use for running the business. This is also true of other financial products such as factoring, invoice discounting as well. This will allow businesses to increase their margins by reducing their finance costs, and could allow further profit for further investment. This can also offer business clients a way to gain independence from their bank, separating debt from day to day banking arrangements.
If you were to take advantage of the services of an impartial finance broker who does not charge a separate broker fee for their services then you are in a position where you can not lose as you have a whole range of options that open up for you and you are not paying any extra for this service. The broker will be able to best place your business and will often be able to beat any offer from your bank and save you a considerable amount of money. Also the broker will not get paid until your deal is completed giving them a strong incentive to find the best deal for you and at no cost to you as the broker earns their fee from the lender whilst working for you!

Safaraz Ali is an Impartial Finance Broker and can be contacted on 07974 650 751 or by email: safarazali@easy4life.co.uk

Good news - Changes to Consumer Credit Act

Following the recent changes to the Consumer Credit Act the £25,000 loan amount limit (applicable under the Consumer Credit Act 1974) was removed as changes from the Consumer Credit Act 2006 came into force. This means that any secured loan funded must be subject to the new Consumer Credit Act regulation meaning the removal of mortgage style redemption penalties and tie in periods. All loans irrespective of amount will now be subject to 28 days notice and 1 month’s interest on redemption at any point throughout the term of the loan.
This is certainly good news in terms for individuals where a secured loan is a suitable option where an individual is in a penalty period and it is not feasible to remortgage then a secured loan can be a genuine alternative.