Flexible financing: The competitive advantage

What do you do to fund it once in a lifetime? Where do you access cash to take advantage of opportunities? What can give you an advantage over your competitors?

It is not always reputation, expertise or even entrepreneurial drive that determines why a business thrives while others struggle. In the end, it can simply be that a company has access to cash and one does not.

When a business needs access to cash to finance growth, execute orders, or even pay for the rising costs of day-to-day business, traditional bank lending is the first port of call.

However, the flexible decision-making that a modern business requires may not always be offered by a traditional lender. In the dynamic world of modern business, there is no time to wait for the cogs of a bank’s decision-making process to turn. A company with the ability to make decisions without having to worry about whether the cash is available to support them has a distinct competitive advantage.

There are many different financing options available to companies in addition to the traditional lending products. Identifying where most of a company’s value is tied and then knowing how to best unlock it is key to providing that benefit.

Frontend working capital solutions include:

1. Financing Purchase Orders – Direct payments to suppliers against purchase orders worldwide for goods covering up to 100% of the purchase price plus customs and logistics.

2. Credit Letter – Payment guarantees covering up to 100% of the purchase price from suppliers, provided that delivery and other conditions are met.

3. Equity Loans – Unleash valuable working capital unlocked on your stock up to 100% of inventory value.

4. Supply Chain Financing – Facilities for financing up to 100% of a merchant company purchase from suppliers worldwide, structured as vendor payments or reverse factoring processed through a proprietary online platform.

Back end working capital solutions include:

1. Invoice Financing Facilities – These are rotating facilities that finance up to 90% of your invoice value, releasing cash tied up in your sales ledger and all ongoing sales. Facilities can be on a revealed or on a confidential basis.

2. Asset-based lending facilities – Facilities continuously release up to 70% of the cost of stored stock. These are designed to complement invoice financing facilities to maximize the amount of service that can be delivered.

3. Plant Refinancing Facilities – A standalone, unique facility designed to raise additional working capital by releasing cash towards plant and machinery. This is an opportunity for quick release of funds that provide up to 80% of the value of the asset, whether directly or currently owned under the existing financing agreement.

4. Sales and HP Back – With this product, the asset is purchased by the lender at an agreed value and funded back to you over a fixed period of repayments corresponding to the income stream generated by the asset.

Contemplating the range of available financing options that explore the vast array of lenders outside of traditional banks is key to getting the best-value financing in shape that fits a business’s unique needs.