Finance Matters

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Eland Business Services Limited have just launched a new web-site dedicated to a single finance product as part of our marketing effort.

www.bridgingfinanceoptions.com will focus solely on short term bridging loans to complement our existing general commercial finance site.

If you are an investor, property developer or maybe moving home needing cash fast and reside in the UK why not pay our site a visit.

By noreply@blogger.com (The Commercial Finance Broker)
Yaab

Small UK companies trading with the public sector have historically had cash flow management problems due to the inability to assign government receivables debt. This created a barrier for SME’s trying to enter this market place. Although factoring or invoice discounting of trade debts was not specifically disallowed, in practice the relevant public sector contracting authorities never gave consent thereby limiting SME’s ability to compete.

Thankfully this position changed in this years budget and it is now possible for firms supplying goods and services to government departments to assign public sector invoices to specialist debt financing lenders without prior approval. If your company would like to know more about factoring debts we recommend reading public sector debt factoring for more information.

By noreply@blogger.com (The Commercial Finance Broker)
Yaab

Received some independent research yesterday from a factoring company. Apparently alternative finance options have increased in popularity, with 52% of accountants saying it is now an “attractive source of funding for their clients”, with asset based funding increasing by 30% in the last quarter of 2007.

Unfortunately these figures exclude invoice assets. As no invoice figures were supplied with the research we presume this market-place is pretty flat in-line with our experience and what we are hearing from our factoring suppliers.

By noreply@blogger.com (The Commercial Finance Broker)
Yaab

Finance offerings in the commercial loan market place continues to change weekly.

Just recently we have been informed of changes to either prices or criteria in the following commercial areas:-

Price increases in the cost of equipment leasing from a number of lenders.

In the short term leasehold business sector one of the main lenders has pulled out of the market.

A major bridging loan lender has announced slight price reductions accompanied by a large reduction in what they will lend against property values.

It goes without saying that virtually all high geared property development loan lenders have either greatly tightened their lending criteria or are sitting on their hands!

Commercial deals can still be placed but overall the quality of any business finance proposal submitted by either brokers or borrowers needs to be much higher than previously required.

By noreply@blogger.com (The Commercial Finance Broker)
Yaab

Further to our previous blog, within the UK business finance market, commercial loan options that do not appear to have been affected by changing criteria are as follows:-

International trade finance seems to have been unaffected by either price increases or loan criteria changes. Therefore exporter and importers requiring “Letters of Credit” or “Forfaiting” can still have similar expectations of funding to the previous 12 months.

The other main business finance area that is relatively unscathed is cashflow finance, although we suspect there may have been some undisclosed changes to criteria in terms of debtor book quality.

By noreply@blogger.com (The Commercial Finance Broker)
Yaab