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How far in advance should you plan your commercial finance solution?

Today I’m going to talk about the timescales involved for Tier 1, Tier 2, and
Tier 3 commercial lending and commercial mortgages.

In terms of putting a case together, getting it submitted, getting a decision
in principle, getting it credit backed (underwritten), and then the time it
takes to go through the legal process in order to draw down the funds.

The purpose of this is really just to give you an idea, if you’re looking to
buy a commercial property, either as an investment, or for owner operation,
or even a trading business, then these are the timescales that you are going
to be looking at.

I’m going to break it down into tier 1, tier 2, and tier 3. This is slightly
different to some other areas where tier 1 is actually going to be a Business
Development Manager (BDM) that you’re talking to, so you are actually talking
to a person, whereas tier 2 and 3 tend to be more portal based, particularly
tier 2 – where it is either meeting criteria, or it isn’t. Tier 3 depends on
the lender, but some lenders will be BDM and some will be portal.

So, on to the timescales. For a decision in principle for a tier 1 loan, using a
BDM, you will most likely be looking at one to two days. For a tier 2, even
though you would apply through a portal, you would still be looking at one to two
days. If you were processing a tier 3 loan, you could have a decision in principle
back in as little as four hours, though this could go up to two days. So, for all
three tiers, it is best to err on the side of caution and plan for the process to
take up to two days.

If you then want to get that decision in principle credit backed, because you are
happy with the deal that’s offered, then that process can take up to 4-5 days,
depending on how quickly an evaluation can happen, and then from evaluation and
credit backing, the timescale to actually draw down the funds varies.

For tier 1, you can look at drawdown taking ten to twelve weeks, tier 2 can be
eight to twelve weeks and for tier 3, you can expect it to take eight to ten weeks.

If you are thinking of going through this process, ideally, you should attempt to
plan anywhere between three and a half to four months ahead of the time that you
want the process to be completed. There is, of course, an option if you want to
do it quicker.

You can look at Bridging Finance (which will be the topic of next week’s blog), so
if you are unable to secure it within the time scale of the three and a half to
four months, as long as the ability to refinance was there, you would be able to
secure the asset quickly.

A lender for a bridge would want to know what your exit strategy for the finance
was, and your exit would be to refinance. As long as you are able to show that
you are able to refinance, then the bridge should be forthcoming.

If you want to discuss these or other business finance options, get in touch by
filling out the contact form on this website and we can work out what solutions
will fit your needs.

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The land owner, developer and financier relationship.

Hi, it’s Graeme from Playfair Finance here.
Are you a land owner, a developer, or have some money put aside that you
want to do something with but are uncertain of what to do with it? If you
fit into any of those categories, then read on.

In the course of my work, I come across projects where people have got a
bit of land and they’re looking for a developer. Or, I come across
developers who are looking for a bit of land, so I can be a bit of a
‘dating agency’.

One of the things I certainly would like to do is talk to people who may
be private individuals, or have got funds that they wish to invest in this
type of arrangement.

Obviously, I can put you in touch with people and make your money turn into
more money.

There are a lot of people getting into that market which kind of makes a bit
of a mockery, sometimes, of the broker who says ‘I’m whole of market’. We
really can only say that you are ‘representative of market’ because there
are so many new lenders coming into the market nowadays, it’s hard to keep
track of them all.

But it gives you plenty of opportunity for developers to increase the housing
stock, which is effectively what I’m here for. So if that sounds of interest,
then please get in touch by filling out the contact form on this website.

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Scottish Contract Cleaning Company with cash flow problems?

We help Scottish Contract Cleaning Companies to improve their cash flow by releasing
cash that they’ve got tied up in their sales invoices.

I’ve been in business for over 30 years, but one of the questions I’m getting asked
at the moment is ‘How do I improve my cash flow when my customers are struggling to
pay their bills?’

So here’s my best advice. If you’re in the Scottish business-to-business sector you
will be raising invoices for your goods or services and normally you’ll be waiting
45 to 60 days to be paid for those invoices. Now, with the Coronavirus you may have
seen a drop-off in trade. If that’s the case you won’t be raising as many sales
invoices so the amount of money that you’re going to have coming in over the next
six months or so will be significantly reduced.

Now you may well have enough money to get you through to the point where we can get
started again, back up to normal levels, or start to ramp things up again. But, when
we actually get to that point, you’re going to have to wait 45 to 60 days again on
the new invoices that you’re raising.

So you’re going to have a bit of a funding gap between raising the invoice, getting
the cash, and being able to thrive when we come out of this time. So, if you want
to release some money in your invoices, this is where Invoice Finance can come in.

So, Invoice Finance will allow you to have 85 to 90 percent of that invoice in your
bank account to assist your cash flow within 24 hours. At the moment the Coronavirus
Business Interruption Loan Scheme can be used on certain facilities if you qualify
to provide a guarantee to the lender.

Now, this is something that we specialise in here at Playfair Finance and it’s really
easy for us to do the legwork for you to save you from having to go to every provider,
for there are many in the marketplace. We take the application from you, and we then
go out to the market to find the best provider for you based on your sector, your turnover,
and how your business has been trading.

So, we save you the time, but we can also find you the best deal.

Now, the best part of that is that actually, there is no charge for our services to do that.
The charges are actually paid by the lender so you don’t have to pay anything at all.

So, if you’re a Scottish Contract Cleaning company and you would like some help with Invoice
Financing, please get in touch.

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Security Guard Companies and their funding gap – how are they going to fill it?

Some of my Security Guard company clients have been asking me how they can
bridge the financial gap between the downturn of trade and when things return
to normal.

Hi, my name is Graeme Shevas.

I help Scottish Security Guard Companies who are having problems with
their cash flow, to release cash from their sales invoices.

I’ve been in business for over 30 years and one of the questions that
my customers have been asking me lately is ‘how do I get my cashflow moving
now that other businesses are having trouble paying their bills?’.

Here’s my best advice:

If you’re a Scottish firm operating in the business-to-business sector,
you’ll be raising invoices for your products or services. At the moment,
your normal payment terms for those invoices will most likely be 45 to 60
days. You may have seen a drop-off in trade and the amount of money that
you’re going to have over the coming months will be significantly reduced.

You may well have enough to get you through until the point where you can
begin trading at normal levels again, but when you need cash to pay the bills
as you return to normal trading levels, you’re going to have to wait another
45-60 days for payment. Therefore, the actual funding gap is going to be longer
than the business interruption.

How are you going to plug that gap?

This is where Invoice Finance and the Coronavirus Business Interruption Loan
Scheme (CBILS) guarantee may be able to help. As soon as you raise an invoice
you could have access to 85-90% of its value within 24 hours instead of having
to wait the 45-60 days to get paid.

This will give you ready cash flow to allow you to meet your costs and thrive
as we get back to normal.

This is something that I specialise in and my role is to make sure that you
don’t need to go to lots of different providers. You only need to provide your
information once and we will access the most suitable providers based on the
sector that you’re in, your turnover, and how your business is doing.

It is a straightforward process to apply and it doesn’t cost you anything,
my fee is covered by the provider.

playfair-finance No Comments

Recruitment companies have options available to release cash from their sales invoices.

Hi, my name is Graeme Shevas.
I help Recruitment Companies who are having problems with
their cash flow, to release cash from their sales invoices.

I’ve been in business for over 30 years and one of the questions
that my customers have been asking me lately is ‘how do I get my
cashflow moving now that other businesses are having trouble paying
their bills?’.

Here’s my best advice: If you’re operating in the Business to Business
sector, you’ll be raising invoices for your products or services. At the
moment, your normal payment terms for those invoices will most likely be
45 to 60 days. You may have seen a drop-off in trade and the amount of
money that you’re going to have over the coming months will be significantly
reduced.

You may well have enough to get you through until the point where you can
begin trading at normal levels again, but when you need cash to pay the
bills as you return to normal trading levels, you’re going to have to wait
another 45-60 days for payment. Therefore, the actual funding gap is going
to be longer than the business interruption.

How are you going to plug that gap? This is where Invoice Finance and the
Coronavirus Business Interruption Loan Scheme (CBILS) guarantee may be able
to help.

As soon as you raise an invoice you could have access to 85-90% of its
value within 24 hours instead of having to wait the 45-60 days to get
paid. This will give you ready cash flow to allow you to meet your costs
and thrive as we get back to normal.

This is something that I specialise in and my role is to make sure that
you don’t need to go to lots of different providers. You only need to
provide your information once and we will access the most suitable providers
based on the sector that you’re in, your turnover, and how your business is doing.

It is a straightforward process to apply and it doesn’t cost you anything,
my fee is covered by the provider.

If you think this may work for you, or have any questions, fill out the ‘Contact Us’
page on this website and we can have a discussion about how we can help.