december 2016 newsletter
TRANSCRIPT
“This newsletter pro-
vides an overview of
the commercial fi-
nance market and
some of the funding
options available.
For more details,
please get in touch”
- Chris Hanlon, Director of
Connected Finance Ltd
Development funding—lenders open for business
The Gift of Cashflow In business, ‘cash is king’, and sourcing a traditional overdraft facility from your bank to
fund your working capital cycle is not always straightforward. But there are alternative
options, such as Invoice Discounting.
So what exactly is Invoice Discounting? Put in simple terms, you are able to use invoices
you have sent to your customers to source funding from a lender while you wait for that
invoice to be paid, bridging that gap between when you pay your suppliers and when your
customers pay you.
This is a tool which can be just as easily used to aide growth as it is to solve existing cash
flow issues. And with some bespoke and innovative products now available, it no longer
has to be seen as a possible weakness of your business.
Facts on Invoice Discounting Q: What level of funding can be achieved?
A: Usually 80-90% of the invoice value can be funded within 24 hours
Q: Do I have to factor all of my debtors?
A: No. Historically this was the case, but there are now a number of providers who will
allow you to finance individual invoices as and when you need to.
Q: Isn’t it expensive?
A: Compared to a traditional overdraft facility, the cost is higher. However, if you are una-
ble to obtain an overdraft from your bank or you need a higher level of funding, invoice
discounting can be the perfect solution.
Newsletter Dec 2016
In This Issue
The Gift of Cashflow
Development Funding-
Lenders Open for Business
Sourcing Finance
Investment Funding
With interest rates at a
record low and likely to
remain so for the foresee-
able future, property in-
vestment remains very
attractive to those seek-
ing to achieve a return on
their investment.
Despite the attempts of
the Government to in-
crease taxes to put off
investors, a strong return
can still be achieved and
there are lenders in the
market who are keen to
support you.
Many property owners
are now looking to move
their portfolios into limited
companies, to combat the
change in taxation on
rental income.
However, this does mean
that a standard buy-to-let
mortgage will no longer
work, but there are lend-
ers who will provide com-
mercial mortgages
against property portfoli-
os, including the likes of
HMOs (house in multiple
occupation) which cannot
be funded by BTL mort-
gages.
So there are options
available, and your ac-
countant will be able to
guide you as to which is
the most tax-efficient for
you.
Property Development Funding
Development Funding -
Lenders are OPEN for business Since the crash in 2008, achieving finance to carry out residential or commercial
property development has become significantly more difficult. With most of the
high street banks withdrawing from this market altogether, this has left many de-
velopers needing to look elsewhere for funding.
However, this has led to some positive change, with a raft of new ‘challenger
banks’ and alternative funders coming to the fore. And these are all very much
open for business.
There are a variety of funding options available, from short-term bridging finance
to enable you to secure a plot of land, to mid-term development finance to fund
the building project itself. Different lenders will look at cases in different ways, with
some providing finance against the project cost, and others against the end-
development value.
Contact Us
Give us a call for more infor-
mation about how we can
help you.
Connected Finance
07540 784 293
01304 849 129
Visit us on the web at
www.connectedfinance.co.uk
Sourcing Finance Seeking funding for your business can be a daunting prospect. Whether you are
looking to finance growth or consolidate existing debt, knowing where to look for
support and how to approach lenders sometimes feels like a hidden secret.
The good news is that it’s an ever-growing market and there are more lenders
than ever before to consider. In fact, on average, around 1-2 new lenders are en-
tering the finance market every month.
While this does not make your task any simpler, it does mean that there is more
choice, and therefore more competition to enable you to get the right deal for you.
And not only are there now more lenders, these new lenders are bringing new,
innovative products to the market which traditional high-street banks are not able
to provide. In this ever-changing economic environment , it is this flexibility which
comes to the aide of many businesses.
With interest rates at an all-time low, there has never been a better time to borrow.
If you would like to talk to us for expert advice on how to go about sourcing fi-
nance, please get in touch.
Connected Finance Ltd
Connected Finance Ltd is a limited company registered in England & Wales. Company Registration No. 10415388. Registered Office 10 Firs Road, Woolage Village, Canterbury, Kent, CT4 6SH.
Connected Finance Ltd are credit brokers, authorised and regulated by the FCA – reference number 762651.
Helping local businesses find finance to achieve their goals
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