Factoring & Finance Review works closely with its lenders to gain readily available facilities in order to support your stock and purchase requirements. We understand that in a thriving business, it’s essential the cash ﬂow cycle continues to rotate. Trade and Stock ﬁnance could be the perfect solution to support the growth of your business reducing cash ﬂow pressure.
It’s understandable that cash ﬂow can be stretched at times within a business, especially when you’re gaining increased pressure to extend debtor terms to win a contract or simply having to deal with longer production times. Whatever the issue, a business needs to have available cash ﬂow in order to either purchase raw materials or stock. It’s essential that the cash ﬂow cycle continues to rotate, moving product through to sales as quickly as possible to meet demand.
When it comes to ordering stock from overseas, this can yet add more pressure to an already tight cash ﬂow situation. Delivery in some instances can be up to eight weeks if not longer from some countries once the manufacture and transportation has been complete. This is ok if you pay on delivery, but a lot of businesses are not lucky enough to have these types of supplier terms and more often than not have to pay in full, either on order or shipment of goods. This ties up cash ﬂow that a business could better use in its day to day operations.
With these situations in mind we work closely with our lenders to gain facilities that are readily available to support your purchase and stock requirements. This could be the perfect solution to support your growth ambitions.
If your business is approved for lending purposes, the ﬁnance may incur an interest rate in line with your business risk proﬁle. The business proﬁle is categorised in three diﬀerent tiers, high, medium and low risk. The risk calculation will be based on the assessment made by the ﬁnancier during their application and approval process. You should expect that the higher the risk, the higher the cost of the ﬁnance.
The assessment will consider all aspects, such as the ﬁnance term, business proﬁtability, and length of trading in the current sector. One of the best indicators of what interest rate you may pay for the ﬁnance is to review your business credit rating. If your credit history is poor then you’re likely to pay higher rates of interest. The stronger the credit rating and a strong ﬁnancial standing should see your business proﬁle improve which means you should see a reduction in the interest rates payable.