Services
Invoice Finance
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- Where an Invoice Financier will buy the invoice you’ve raised and awaiting payment on. They will advance a large percentage of the invoice value to the business within 24 hours, and when the invoice becomes due will secure payment, releasing the residual amount not advanced – minus any fees. This finance will ease cashflow and provide the business with funding for growth. The facility provided may also include credit control and reconciliation activities. It may also be disclosed or confidential.
Asset Finance
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- Money borrowed plus interest in order to purchase an asset, such as equipment, useful to the business. This type of loan can be longer term using the asset as security and having a residual value that could be realised at a later stage to repay the loan, if the company is unable to do so. It is also possible to release cash tied up in unencumbered assets owned by the company, for a cash boost – subject to valuations. There are also asset funders who specialise in certain assets such as vehicles, plant and machinery, agricultural, printing – these will provide the best valuations, knowing the true market values.
Crowdfunding – Peer to Peer Lending
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- An organised means (via a managing company typically) for a large group of people/investors to contribute relatively small amounts towards funding a business or an idea. The managing company uses a platform (the internet) to bring the parties together. It will scrutinize and prepare the business in readiness to be presented onto the platform, having carried out relevant checks into the principals’ backgrounds and the viability of the amount of loan being requested. It will also ensure the company’s ability to repay the loan plus fees – thus protecting the investors and granting them the returns they are expecting.
Business Protection
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- Business protection insurance is a way of helping to protect against possible financial losses in the event of the death or critical illness of a business owner or key individual during the length of the policy. Defined policies include; key person cover, shareholder protection, loan protection or a relevant life policy – thus protecting profits, enabling retention of control and tax efficient ways of arranging life cover for employees.
Selective or Single Invoice/Debtor Finance
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- The same principle as Invoice Finance. This is also known as Spot Factoring. This type of funding enables the company to access working capital from debtor invoices on an invoice-by-invoice basis or even debtor-by-debtor basis, without having the need to enter into a long-term contract with the Invoice Financer. This can be useful for companies with seasonality in their trading cycles. Cost is simpler too; one invoice, one fee and only pay for funds in use. No monthly minimum charges.
Commercial Mortgages
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- A mortgage loan with the addition of interest and repayable over a set term. Secured by a property and used to acquire, refinance or refurbish commercial property. A funder will usually grant between 55% and 75% loan to the value of the property, unlike residential, where 80% or above may be granted – therefore a company will need to invest the difference to make up the purchase price.
Trade Finance
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- It’s essentially a line of credit that can be used to pay suppliers, locally or overseas. It provides a company the time to take possession of goods and turn them into cash, before having to pay for the supply. This can be an ongoing cycle of funding used repeatedly. The goods purchased can be both raw materials and finished products. Suppliers can be overseas and it can also be used to assist with the payment of local suppliers. The majority of repayments are made via telegraphic transfer however Letters of Credit and Bank Guarantees are also available. The usual term for repayment is 90 days from shipping date or invoice date (for domestic suppliers) – overseas may be longer subject to arrangement with the funder.
Retail Finance
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- The retail financer will provide the company with Point of Sale finance – helping independent and niche retailers provide their customers with the ability to pay for products and services in monthly instalments. This can also be offered to companies who supply high end, luxury items when credit may be required by the purchaser.
About Benson Consultants
An independent owner managed business which can call upon a large number of years of experience and networks to provide funding solutions to businesses throughout the UK, whilst being small enough to care about your business.
Our Latest Case Study
after obtaining an unsecured loan to the business repayable over a 5 year term (without early repayment penalties) this has enabled the business to achieve good credit terms with suppliers as well as enjoying discount through larger orders…