One road can lead to disaster and the other to business success. One of the key reasons companies have financial problems or, worse still, go into insolvency is because expert independent advice was not taken before signing with a finance company. It’s a common problem: the company directors meet a nice salesperson, who seems very friendly and the directors’main focus is on how much they charge and what percentage they receive up front.- and not on whether the finance company is suitable.
A good independent firm will look at the type of business you are, your turnover, your expected turnover andyour client base, and will listen very carefully to what your requirements are. Then they will select the right finance company – the one that is best suited for your business. There are well over 150 different finance companies out there, so it really makes sense getting some help in choosing the right one - as the wrong choice can lead to disaster.
The number one problem that arises is when a company has a special request, and this happens quite frequently; they go to their account manager and not the salesperson they met. The normal scenario is they make their request, and if that does not fit in the box the answer is no. There is little or no flexibility, and the company is then left to deal with the situation.
However, a specialist will take you to the right finance company, one that already has a high number of clients in your sector and truly understands the nature of your business. A specialist should give you the confidence to make specialist requests; if your request is reasonable, and passes the ‘common sense’ test, a specialist should handle it properly – and you can expect a favourable answer.
Breakdown of the major types of funding available
Factoring - disclosed and undisclosed
Confidential invoice discounting
Overseas finance
Domestic purchase & order finance.
Asset based lending -normally on invoices, property, plant and machinery, and stock.
Emergency funding
Companies such as Ringrose can normally put the above in place within a week – and even put a full facility in place in 24 hours.For further information and to find out “What the Golden Rule is on Finance " call Mark Smillie of www.ringroseandco.co.uk on 0800 612 5364