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Are you starting to panic about business cashflow or invoice funding?

I have been wondering whether there are people out there who have businesses who are starting to panic a little bit about their financial situation.

Now, this could be a growing feeling of concern that your cash flow is going to stall, or maybe you have noticed that the cash is not moving around your business as it did before the Coronavirus pandemic. You might have the growing realisation that you are going to run out of cash before you actually start to get money coming back in through the door.

Raising Invoices

Or it could be that you are raising invoices, but you are not getting paid as quickly as you would like to get paid.

So, you are wondering how you are going to pay your own bills, or it just could be that you don’t have any cash reserves?

As a result of not having any cash reserves, you have no confidence in terms of being able to meet your commitments going forward.

If this is the case, then we may have a solution for you, and it is a solution that I have used in the past in previous businesses to ensure that the cash keeps flowing, and that cash flow solution can be a life saver.

 

And if it is a life saver and we can help to save more businesses from going out of business, then that is why I am here.

So, if you do have a requirement to even just talk to somebody about it, because the worst thing you can do really is to bury your head in the sand and think that everything’s going to be fine, and it will go away.

It probably will not go away, and it will need to be addressed.

Review your businesses financial plan

Now, whether it is addressed with reviewing your financial plan and your costs or whether it is by putting a solution in place, something needs to happen.

Contact us today so that we can help you set up a plan and work out a solution to keep the cash flowing through your business.

 

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Bridging Finance, not just for property.

 

Bridging Finance is primarily seen as a property related bit of finance because it can be used to secure against property. That is one of the easiest ways of getting it, just on the basis that property gives the bridging lender a relatively understandable exit – in terms of how they are going to be repaid.

Bridging Finance can be used for business purposes as well. If you have a shortfall of cash but you know that you have got cash coming in in the future. Bridging loans are typically six to twelve months, though they can go up to twenty-four months, so it can be used for different purposes, if there is an exit strategy.

Now, the one thing to bear in mind with Bridging Finance is that whilst it primarily doesn’t need to be serviced, so you don’t need to make payments against it, what happens is that the interest that is building up is that it gets added up and then taken away from the original loan value that you have secured.

What this means is that your day-one draw down is actually less than the value of the loan, to the tune of the fees and the interest, so you really need to bear that in mind when you are arranging your finance.

The original main loan value will be based on the loan-to-value, but the actual amount of money that you will have in your pocket will be different to that, unless you can prove through your income that you are able to service the interest on a monthly basis, which then releases all of that interest from the loan into your day-one draw down. This allows you more money upfront, but you must make a monthly payment. The lender will require proof of how you are going to do that.

There are still lots lenders out there, and more lenders are coming into the market.

Coronavirus has had a little bit of an impact, in terms of some lenders have withdrawn from the market, but there are still plenty out there.

If Bridging Finance is something you are looking for, or considering, then it is still very much on the table. If you need Bridging Finance or want to discuss your options, fill out the contact us form on this website and we will be in touch.

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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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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.

For more information and to see how a flexible Invoice Finance orFactoring Solution can benefit your business, please call us today or submit an enquiry and we will contact you.