Commercial Finance Case Studies

Commercial Case study one

Mr F came to us looking to purchase an existing business. He already ran a business in the same

 industry and this would

 provide further synergies. The new business also allowed him more office space to run the two businesses from, and to rent some space out to a

 complimentary business. In addition he would be able to rent the other offices within the building. Being a normal business, his accounts did n

ot show large profits, and on the surface was not able to afford to service the new debt, and his existing bank were not willing to lend. However, once we became involved we could se

e that the new business could be purchased using the EFG (Enterprise Finance Guarantee) providing a substantial deposit could be raised which we arranged from other sources. Terms were sought from our High Street bank contacts, and the best deal selected.

 After discussion with his accountant, she decided to purchase the business in a new limited company name, and we arranged the formation of the new company.

 Hopefully this case shows that there is still finance out there for the small businessman, and the benefits of using a broker to place the deal, even if your

 client's bank has said no, there may well still be a deal to be done, especially in the current climate. Give us a call to let us help you.

 

Commercial Case Study

 Two

Two partners from a successful restaurant approached me for £100,000 finance to

 develop a second location, as their business was only 18 months old, and had not had chance to develop

 sufficient equity to borrow against their current high street bank had said no.

We discussed traditiona

l methods of funding a second restaurant including using the EFG, but as the new premises would likely be leasehold this was not feasible.

After extensive research and using our existing contacts I came across the ideal solution with unsecured business finance, using their PDQ terminal turn over to determine what level of funding they could have and how they could pay it back.

Hopefully these cases show that there is still finance out there for the small businessman, and the benefits of using a professional brokers to place the deal, even if your bank has said no, there may well still be a deal to be done, especially in the current climate.

Give us a call to let us help you.

Attention all business!!!! Unsecured cash advances based on merchants' future credit card transactions

How do business cash advances differ from business loans?
Business cash advances are based on merchants' future credit card transactions. Unlike traditional loan programs, a cash advance is totally unsecured (does not require collateral or a personal guarantee). The program

 is available to business with good or bad credit. Because the merchant cash advance is based on future credit card receivables, a good credit score is not required to be approved. Unlike loans, applying for a business cash advance takes literally minutes and approval is typically done within 24 hours.

What can business cash advances be used for?

Merchants are free to use funding from their cash advances for anything they desire. Unlike other financing options available to businesses through banks and private lenders, we do not require a plan for the funding advance and we don't require that it be used for any specific purposes. A cash advance can be used for expansion, renovations, payroll, equipment, general business cash flow, or anything that you decide.


What types of businesses / merchants are eligible for the cash advance program?

Any business that processes a minimum of £3500 per month in credit card transactions and is not a home based business can be approved for a merchant cash advance. Start-ups and home-based businesses are currently not eligible, and businesses must currently be processing credit cards with a physical terminal (paypal and other online payment gateways do not qualify).


How is a business cash advance repaid?

Repayment on business cash advances are simple and easy to manage! The best features of a business advance are: automated and flexible payments. Because advances are based on future credit card sales, your business pays back its advance based on sales volume – making repayment amounts suited to your business ability to make those payments. When receivables are slow, payment amounts are less, meaning we work within your business's cash flow situation.

• 
  How easy is it to get approved? How do I qualify? How does it work? How do I pay it back?
  
  Read on the questions to these answers are here!
  
  
  Do I qualify for a cash advance?
  
  -If you accept credit cards you qualify for our unsecured cash advance program you could qualify subject to certain conditions.
  
  How does a cash advance work?
  
  -We advance your business up to £100,000
  -depending on your needs and your current monthly volume of credit card sales.
  
  What if I have bad credit?
  
  -Unsecured cash advances are credit scored.
  -Bad credit is usually not a problem. 
  
  How do I pay it back?
  
  -  This is a total facility that can be drawn down by the client and is reclaimed depending on the term of borrowing starting at a rate of 20% per month
  
  How long is the application process?
  
  -The application only takes a few minutes and or less and in some cases approvals can be within 48 hous.  

The advantages of the facility are:

• Unsecured
• No valuation costs
• No lender’s solicitor cost
• No borrowers solicitor cost
• No broker’s fee
• Flexible payback time - extending the payment period does not cost more
• No APR % so it has significant advantages over a bridge
• Fast decision
• Fast payout
• LTV irrelevant
• Perfect for leasehold

The ideal funding solution for:

• Pubs & Guest houses
• Hotels
• Florists
• Restaurants
• Wine bars
• Hairdressers/Beauticians/Spas
• Off licenses
• Garages
• Pet shops/care
• Hotels
• Anywhere that uses a card terminal.

For more information call 08444 123 172 or email

NEWSFLASH Consumer Credit Claims Frozen!

NEWSFLASH 8 May 2009

Judge freezes credit claims!! Consumers overwhelmed with debts are unlikely to be able to write-off credit card debt due to unenforceability. A judge has frozen more than 100,000 claims by indebted borrowers attempting to write-off credit and loan debt by using a loophole in the law which could make the contracts unenforceable

source: Really Useful Brokers

Company liquidations up 56 per cent

Company liquidations up 56 per cent - 01/05/2009

There were 4,941 compulsory liquidations and creditors’ voluntary liquidations in the first quarter of 2009, a rise of 56 per cent on the same period in 2008.

Figures from The Insolvency Service reveal that these were made up of 1,579 compulsory liquidations, which increased 43.6 per cent from 1,100 year on year, and 3,362 creditors voluntary liquidations which soared 62.5 per cent from 2,068 in the first quarter of last year.

The report also shows there were 1,783 other corporate insolvencies in the first quarter of 2009 comprising 316 receiverships, 1,311 administrations and 156 company voluntary arrangements. These represented a rise of 54 per cent on the same period year.

The statistics also show that personal insolvencies in England and Wales were up 19 per cent in the first three months of 2009, year on year, to 29,774. These were made up of 19,062 bankruptcies, which increased 23 per cent on the first quarter of 2008, and 10,713 individual voluntary arrangements (IVAs) which were up 11.8 per cent by the same comparison.

Richard Fleming, UK Head of Restructuring at KPMG, said: "The jump of over 50 per cent on last year’s figures is a staggering reminder of how quickly the recession has knocked down many businesses in its path."

The manufacturing industry made up the second largest number of all insolvencies and saw a rise of 28 per cent in the last quarter (257 up from 201). Paper publishing and printing saw the largest increase at just under double last quarter's numbers (51 up from 28).

Fleming added: "Unfortunately we are seeing companies with nowhere else to go failing as their backers, realising that they are throwing good money after bad, snap the purse closed. The financial sticking plasters which were applied to struggling companies when liquidity was still available are now coming away and lenders are unwilling to reapply them.

"We expect to see the rate of insolvencies gathering pace over the coming months as the Darwinian theory takes effect in the corporate world. Interestingly the company voluntary arrangement (CVA) figures are fairly stagnant (156 compared with 149) but this could change with the approval of the JJB CVA. We may now see more compromise deals being struck between companies and their creditors to avoid insolvency."

This week figures from PricewaterhouseCoopers revealed that 5,483 organisations became insolvent in the first quarter of 2009, with trustees in the manufacturing, retail and construction sectors being hit the hardest.

Meanwhile, a survey of the UK’s insolvency practitioners by R3 said they expect a 31 per cent increase in personal insolvency by the end of 2009 compared with 2008. It gave a prediction of around 139,000 personal insolvencies for whole 2009 in England and Wales.

R3 President Peter Sargent said: "Today’s figures show the start of major rises in personal insolvency, which insolvency practitioners, those on the front line, believe will rise quarter on quarter this year. We know personal debtors usually take up to six months to seek a statutory debt solution and by the end of 2009 the figures will reflect this lag."

Source: Credit Today