image of a calculator and person signing paperwork for website J&J Commercial Finance Business Cashflow

Business Cashflow

Business Cashflow can be very up and down, especially over the over past few years as we come out of the Covid-19 Pandemic. We’ve noticed an increase in client asking about funding for business cashflow so below is a little blog on the options available.

Recovery Loan Scheme

As part of the governments response to supporting businesses impacted by the Covid-19 Pandemic and following the end of the CBILs and Bounce Back Loan scheme. The Recovery Loan Scheme (RLS) is the latest scheme that the government has launched. Its currently due to run until 31st December 2021 (Subject to Review).

The scheme through its accredited lenders offers

  • Term Loans
  • Asset Finance
  • Invoice Financing
  • Revolving credit facilities (Overdrafts)

The scheme is aimed to support business who may not meet lenders existing criteria. One of the main criteria that we have seen is the business needs to have been profitable in its last set of accounts (some lenders last 2 set of accounts).

Want to know more then visit our blog all about RLS or submit a RLS enquiry

Invoice Finance

Invoice Finance is a way for a business to borrow money against its outstanding invoices. When you issue an invoice you may have to wait anything up to 120 days (depending on your terms) until your client pays. Invoice Financing enables you to get access to the those funds within days so you no longer have to wait until your client pays you. A lender will typically give anything between 60% – 85% (sometimes more) of the invoice on Day 1, this varies depending on the debtor book, sector and type of business, sometimes higher amounts can be given by using additional schemes available to UK Businesses.

There are a few different types of Invoice Finance facilities available

  1. Invoice Discounting – this is probably the most straightforward type of invoice financing. The business is still hands on with its invoices and will run it own credit control.
  2. Invoice Factoring – With this product the lender is more closely involved in the transaction. The lender will generally handle the collection of invoices from your clients and act as your credit controller. They will then collect the debt and make the remaining funds available to the business.
  3. Selective/Spot Invoice financing – This product enables you to select the invoices that you want financing rather than the ones above that look at all of your invoices.

Conditional/Disclosed facilities  – If a facility is confidential then everything the client will receive will look like its coming from the business that it owes the invoices to, with a disclosed facility the client will receive communication and branding from the lender who holds the invoice finance facility.

To find out more about invoice financing read more on our blog, or enquire now

Business Loans

Business loans either unsecured or secured can give you a quick cash injection into the business. Typically repayable over a maximum term of 5 years this gives you a set monthly repayment amount. Rates vary and just like a personal loan are based upon the client and company circumstances. Using our range of business loan lenders we can help provide you indicative quotes based on your circumstances in order for you to compare interest rates and fees. It’s also not just about the upfront fees but also any early repayment fees – whilst a number of lenders give the option to repay early without fees there are some that still contain redemption fees.

Typically lenders will want to see the last 2 year full accounts and the last 6 months bank statements in order to assess affordability for the loan. Sometimes they might require additional information such as VAT returns and Management Information.

This tends to be a quick application process with decisions back within hours of a full application and funds can released extremely quickly if approved.

If you’re thinking about applying for a business loan complete our fast enquiry form online.

Asset Finance

In its simplest terms Asset Finance is a type of secured finance where the lender will take a security interest in an asset. It’s changed a lot since the days where it just used to be machinery, cars, yellow goods (JCBs etc..) and now covers a broader range of assets. It generally still covers business critical assets for example a fleet of lorries for a logistic company or a coffee machine for a café. This broad range means that asset finance is accessible to businesses across different sectors.

From new start up business to established business Asset Finance is an option available when purchasing new assets into the business. The types of assets are so varied it could be catering equipment, Vehicles, Lorries, Printers, Manufacturing, Construction, as well as Medical and Dental equipment, Gym Equipment, Shop fittings, IT etc…. the list can be endless.

Asset Finance is available to Sole Traders, Limited Companies, Partnerships, Individuals

The asset also doesn’t have to be a new, it can be second hand and we can work with you and the supply to ensure a smooth process. Due diligence will be undertaken to make sure that there is no outstanding finance on the asset before ownership is changed.

Want to know more about Asset finance visit our blog or enquire today.

More Business Cashflow Solutions…..

Whilst the above are probably the most common form of lending to support business cashflow there are few others…

  • Merchant Card Advance – This is a really flexible way to get extra cash into your business, that has flexible repayments in line with your takings. So if your business takes regular card payments its worth exploring this option. We’ve created a simple enquiry form should you wish to find out more.
  • Commercial Mortgage – If you own your own business premises then an option might be to release some additional equity from that property.
  • Stock Finance – Does you business require large amounts of stock that is either pre-sold or has strong demand – then stock finance could be an option using the value of the stock as security
  • Trade Finance – Do you need to purchase materials in order to make something for onward sale – Then trade finance could help to provide funding to enable you to purchase goods and start the process. It can also cover if you need to import and export and need additional funding.
  • Revolving Credit – Very similar to an overdraft facility you have a pre-defined limit that you can drawdown and repay as and when you want with interest applied for the amount you use.

If you want to find out more about business cashflow solutions submit a quick enquiry form online, contact us on 01709 805 624 or email