Uncategorised Archives - First 4 Commercial

What is Invoice Factoring?

For many companies the problem that they encounter the most relates to cashflow. Invoice factoring is a service that can be provided by an external company, such as First4Commercial, to help fund your cashflow by acquiring your invoices at a discount.

Invoice factoring is an enticing solution to companies with cashflow problems and also goes under the names ‘asset based lending’, ‘debt factoring’, and ‘invoice finance’.

Invoice factoring is a really simple process. If you are in need of some funds to control cashflow and have outstanding invoices, we can manage your sales ledger and credit control on your behalf. We will offer an advance a percentage of the funds linked to the invoices to help you with your cashflow problems. Once the customer has paid, we will make the remaining balance available to you with a small fee retained.

The major advantage to invoice factoring is that it allows you to free up cash that is tied to unpaid invoices, making financial management of your company a lot easier. You can focus on what makes your company tick and allow us to look after your credit control and invoice factoring, meaning that you don’t have to chase clients for payment, or worry about cashflow in the immediate future.

Contact our specialist team at First4Commercial today and we’ll be happy to discuss our invoice factoring service and how it can assist your business in managing cashflow effectively and not having to worry about chasing clients for unpaid invoices.


Self-Build Mortgages, What To Look For?

Finding your perfect home is not always that easy, so building your own dream home and forging exactly what works for you is a way of living that many people are now veering towards. Financing a self-build isn’t necessarily that easy however and it requires a different type of mortgage compared to the conventional high street offering.

Whether you are opting for the self-build, do it yourself route or buying in the professional services of an architect, electrician, plumber and builder, the process needs to be thought through with precision accuracy. Whichever route you decide on, a standard residential mortgage will not apply.

So what are self-build mortgages and what do you need to look for?

  1. The main difference between a self-build and standard mortgage is that the funds are released at varying intervals throughout the build rather than in one lump sum. The main reason for this is that it reduces the risk to the lender and ensures that the money is spent according to plan rather than running out half way through a project.
  2. It will depend on the lender as to when the funds are released, however it basically works out that the first portion of money is given when the land is purchased, the second when the foundations are laid and the next payment is issued when the property is built to eaves level. The next payment is generally released once the roof is watertight and the interior walls finished and the last instalment is issued once the property has been completed.
  3. Some lenders will release more of the money up front, this is particularly useful if you need to purchase all of the materials and pay for the labour requirements before the build commences.
  4. The interest rates on self-build mortgages do tend to be higher than the standard residential mortgage so finding the right broker is essential for you to get exactly the service that you need.

A Quick Guide to Asset Based Lending.

What is asset based lending?
Quite simply asset based lending is a loan that is secured on the assets that your business holds. This is secured through inventory, machinery, equipment, balance sheets, property and any accounts that are due to be paid to the business applying for the funding. Therefore if the loan is not repaid for any reason then the assets on which the loan had been secured, will be taken.
Who requires asset funding?
Asset based lending is usually considered by a business when other forms of lending are not appropriate or available. It can help to provide immediate capital for a company who may require a project that they are developing to be financed quickly. For example companies that need to increase their stock/inventory. Or if old equipment needs replacing and capital is not freely at hand. Mergers, acquisitions and debt purchasing are also examples. Other companies wish to expand their business without over stretching themselves and causing financial pressure, so therefore asset lending is an extremely useful way of providing a secure capital injection.
Why choose asset lending as a financial option?
Whereas years ago, asset based lending was considered a last resort in terms of financing a business, it is now considered by many companies and business’ a popular choice. For smaller companies and individuals who do not have a good credit rating, or track record, or for those that require capital more quickly, this form of lending is a great resource to have.


Points To Consider When Purchasing Buildings And Content Insurance.

Pat McFadden, the Minister of State, Department for Business Enterprise and Regulatory Reform stated that;
“Insurance is an essential safety net. The floods of 2007, for instance, hit many businesses hard, not just through physical damage but also through the interruption to trading that followed. Insurance helped to put these businesses back on their feet and pay the cost of the damage.”
1. The building within which the business operates and the contents that enable it to run need to be insured. Insurance policies that cover this will provide the financial help needed to rebuild your operation after any damage caused through specific events such as fire, flooding, lightening, burglary and even earthquakes.
2. In addition interruption insurance can also be purchased for your business, if it cannot trade due to external factors or if the property has been damaged. An insurer will often send in a disaster recovery firm who will take immediate action, such as calling on reliant building firms to sustain any damage that has been caused.
3. A building should be insured for its full rebuilding cost, including any potential fees that may occur, such as clearing the site of the damage.
4. If you are renting the building then always check with the owner what type of insurance they have.
5. If you work from your home then check what your home insurance covers. If you need to take out an additional policy or update your current one for the protection of computer equipment for example then do so.

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