Checking your business finances can send you running for cover

Why you need a market wide business finance review.

Regency is increasingly coming across businesses who had secured a variety of funding facilities either directly themselves or through an intermediary a number of years ago.  These businesses have not reviewed their funding needs or current facilities since they were first incepted.

This lack of review can raise the following unchecked questions: –

1. It the funding still appropriate to the business needs today?
2. Is the cost of funding reflective of the current market rates?
3. Is the funding set on a true bank base rate or over a rate set a number of years ago?
4. Are there more cost effective ways to finance the business now?
5. Do you have all of your eggs in one lenders basket?

This is particularly appropriate to factoring and invoice finance facilities that have been in place for a number of years.  We regularly come across agreements that are not over a true Bank of England base rate. It is not uncommon to see interest rates set as high as 6% + the lenders margin. Significant savings are available to those that seek them.

As with a company’s business plan, commercial finance agreements should not be left gathering dust in an office cupboard or set of drawers.  For some businesses the cost of finance can be a significant item of their profit and loss account.

A simply review of your existing commercial finance arrangements can save you literally thousands of pounds of your hard earned profit. 

A simple business finance review, by an experienced commercial finance broker could take only and hour or so and they will do all the hard work for you.

In an uncertain commercial funding market it is important to note that a review of your finances can happen without the knowledge of existing lenders or banks.  So there is no need to worry about them removing facilities just because you are shopping around for more competitive options.

With the demise of the traditional bank funding, invoice finance and working capital facilities are a fiercely competitive area of the commercial finance market and can complement your existing bank facilities. It’s not always about cost savings however, as delivering more working capital into a business without any additional security will yield greater profit to the bottom line. It is simply making the right tools work smarter for your business.

If you’d like to find out more about our credit control and bad debt protection, we’d love to be able to help. Why not give Regency a ring today on 0161 280 4010, drop us an email at lynnew@regencyfactors.com or browse our website for more details on how our facilities work