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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.

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I’m currently working on a commercial mortgage for a client. I thought it appropriate
to go through some points that were raised in our recent discussion about commercial
mortgages.

So, most commercial mortgages are going through Tier 1. This is High Street lenders
effectively. You can get fifteen-year terms if you’re doing it as an investment, and
20 years if you’re actually owner-occupier, but High Street banks tend to be capital
and repayment.

The loan to values can be eighty percent for owner occupier, or 100 percent if you are
looking to buy a portfolio which is tenanted. So if it can be shown that it’s genuinely
under market value then effectively you may be able to do it without putting any money
in. In saying this, a lot of lenders prefer to see some ‘skin in the game’.

Tier 2 tends to become a little bit more attractive. This is on the basis of a lower cost
to repay because they will offer either a capital repayment, part and part, or interest-only
facility. So, whilst they will potentially be slightly higher in terms of their interest rate,
it may suit the strategy that you are operating. Because of that, tier 2 might be worth
looking at.

Tier 3. There are less that get there, let us put it that way. But it can be used if
potentially you have some adverse credit. So, if you have adverse credit, not within the
last 12 months, but 12 months or older that can be explained away then tier 3 may well
look to support you on that.

Now, commercial mortgage is obviously for property, but you can also use it for buying a
trading business. So, there are two valuations that you get when you are buying a trading
business that operates from a property, and one of them is called a market value and the
other is market value one, so MV1.

MV1 tends to include an element of goodwill, fixtures and fittings, and things like that,
so you can borrow slightly more if you are going to buy a business that is operating. Do
bear in mind that if you are going to be an owner operator your maximum term is going to
be 20 years. Also, if you are going to the High Street, it’s capital and repayment that
you’ll be looking at.

If you are look to buy a commercial property, or even a trading business and you think we
can help, please get in touch and we’ll be happy to have a conversation and see where it leads.

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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.

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Invoice Finance facilities for the Scottish Transport and Haulage industry.

Hi, my name is Graeme Shevas and I help Scottish Transport and Haulage
companies to improve their cash flow by releasing monies from their
sales invoices.

I’ve been in business for over 30 years and the question I’m getting
asked most often at the moment is ‘How do I improve my cash flow now
that my customers are finding it harder to pay their bills?’

So, here is my best advice. If you are in the Scottish business to business
sector you will be raising invoices for your goods or services and you’ll
probably be waiting 45-60 days to be paid for those invoices. As a result
of the Coronavirus you may well have seen a downturn in trade. It’s not always
the case with transport but certain sectors and companies certainly have, so
that will mean that you’re raising less invoices and as a result, the amount
of money that you will have coming into your bank account over the next few
months will be significantly reduced.

Now, you may well have enough money to get you through to when you return to
normal levels of trade again, but when you get back to normal levels of trade
you will have dwindled away your cash reserves and you will still have to wait
45 to 60 days to get paid for your new sales invoices.

So you’re going to have a funding gap, potentially, so how do you plug that
funding gap?

This is where an Invoice Finance facility will be useful because if you have an
Invoice Finance facility, as soon as you raise a sales invoice you can receive
85-90 percent of the value of that sales invoice into your bank account within
24 hours.

Now, with the Coronavirus Business Interruption Loan Scheme you may well qualify
for a guarantee to be provided, by the government, to the lender in order to put
that facility into place.

This is something that we specialise in and my role is to make sure that you
do not have to go to lots of different providers in order to find the best deal.

You apply solely to us and then we then take your application to the market and
find the most suitable lender based on your sector, your turnover, and how your
business has been trading. Once we find the most suitable lender, we then get
the best deal possible for you.

The best part of it is that this service does not actually cost you anything.
The fee that we receive for doing this is paid for by the lender.

So, if you are a Scottish Transport or Haulage company and you are wanting
to put into place an Invoice Financing facility then please fill out the
‘Contact Us’ page on this website and we will work out what we can do to
improve your cashflow.

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Bridging Finance and the impact of Coronavirus

We provide services to businesses who need assistance with
all types of finance, including Bridging Finance.

Hi, my name is Graeme Shevas.

I help businesses who need assistance with Bridging Finance and I
wanted to give an update on the Bridging Finance Market as a result
of Coronavirus and any impacts that it may have had. The first
thing to note, really, is that there are still plenty of bridging
lenders out there willing to lend, but there have been a couple of
impacts.

The main impact really is that some lenders have been withdrawing
from the market, and other lenders are actually finding that the
funds that they have available to lend are reduced. This is as a
result of people who are coming to the end of a bridge and not
being able to refinance, due to the current situation. They are
finding that the bridges are lasting a little bit longer, so the
funds aren’t coming back into the coffers in order to be able to
loan them back out again. There are some lenders who have not
completed on deals, or who have had deals that were not completed
and have now withdrawn the offer of finance. So, it’s a bit of a
mixed bag.

The main thing to note, really, is that the amount of money that is
loaned out on a bridge has actually reduced as a result of the value
decreasing. So, if you’re looking at a property transaction for the
bridge and the loan-to-value against which it will be secured is
probably, on average, about 10 percent down, largely to do with the
valuations, in terms of getting a desktop valuation done and reducing
the amount of risk involved in that.

So, the bottom line is that they are still available, there are lots
of lenders, and if you have a funding gap and it wasn’t necessarily
property related, maybe it was to do with business, as long as you
can prove an exit, (i.e. a way of actually repaying it in a period of
time, so maybe you’ve got other funds coming in our you’re waiting for
some finance against a commercial property or you’re trying to sell
something and the money has not come in yet but you desperately need
it now) it’s still available.

Bridging Finance is a flexible bit of finance which will suit many needs.
If this is something that is of interest to you or you want to discuss
it further, you can reach me on 07776 257 342,
email graeme@playfairfinance.co.uk or fill out the
‘Contact Us’ section on this website.

For more interesting hints and tips, you can also visit our YouTube
channel at https://www.youthttps://www.youtube.com/channel/UCbvTGclIvFBNhr1GwC3rFSQ/videosube.com/channel/UCbvTGclIvFBNhr1GwC3rFSQ/videos