Impact of Coronavirus On Business
COVID-19 was unexpected and has hit the UK economy hard, it has forced most businesses to put a pause on what they were doing or even to close completely. This has had a great impact on trading and the economy BUT it will return one day soon. With a lot of restrictions in place, businesses are having to phase re-opening and stick to the government guidelines; which are being set daily and weekly depending on what COVID is doing.
Having been in the finance industry specifically Invoice Finance for over 14 years this is something we would never have expected to see. Coronavirus and the impact on business has caused a large wave through the finance world, and some lenders have lowered what they can offer or pulled out of the funding arena completely. This has caused negative a knock-on effect to businesses that require financial assistance.
In attempt to help business the Government did step up to the plate, maybe a little later than we all hoped for, and introduced the Coronavirus Business Interruption Loan Scheme (CBILS). CBILS did not take off as planned and a lot of UK businesses found it hard to obtain a facility leaving a big hole that still needed to be filled. This then led to the Bounce Back Loan (BBL), which was a lot more successful and accessible to a larger number of businesses especially the SME market. Whilst this has kept many businesses afloat it will not last forever and funds will start to dwindle leading the business to source other financial assistance.
Invoice Finance Facilities
Invoice Finance has been around and assisted MANY businesses in all industries for many years; yet business owners still have a split opinion on the product.
You hear the standard questions or statements being made such as:
- Factoring? That is for businesses that are in trouble!
- It is so expensive!
- Why don’t you just get a loan!
- They are finance sharks!
This is far from the truth! If you get the correct invoice financing facility in the first place, then the above questions/statements will not enter the equation.
Invoice Finance facilities are tailored to suit the business requirements. This takes time to arrange as to offer a facility the broker or/and lender will need to understand the business, the directors, the story, the end goal etc……. it is not as simple as just here you go give us an invoice and we will give you 80% back.
Needs and requirements of the business are key. It is important to approach an experienced broker with the ability to tailor a solution to the requirements of your business. There will be a facility to suit the business for all parties involved, and here at MC Commercial Finance we have the skill and dedication to create an invoice financing facility to meet the requirements of your individual business.
See below for some of the options available that can be linked together to suit:
- No contracts
- Contract from 3 months upwards to 24 months
- No Minimum fees
- Monthly Minimum Fees
- Full credit control on ledger
- No Credit control on ledger
- Part credit control on ledger
- Confidential – customers completely unaware
- 40% – 90% funding on total amount of invoice
- Up to 120 days of funding
- Online portal
- Verification on the invoices (for protection)
- Credit insurance to protect up to 90% of the debt value
The list goes on and on; but this shows how flexible invoice finance facilities can be.
Each business is different; and this is why all of the above options can be linked together to fit the package to suit the requirements of your business.
MC Commercial Finance and our support
MC Commercial Finance is here to support and assist the SME market through these tough times; and, to offer the expert advice and knowledge to allow invoice finance facilities to be set up correctly, and to suit the individual requirements of your business.
To get more information on the tailored facilities please contact us on 01925 717 422 or via email at firstname.lastname@example.org
Please visit our website to see the full range of products that we can assist with: