Short term finance

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Original Message Added : 30 May 2012

Our company has recently taken on a few contracts that have a 45-50 day payment term as standard. I have spoken to the bank and been told an overdraft is the way to go, im not sure. I would like to talk to anyone who could offer some different solutions to sort term finance whithout using invoice discounting.

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	Gary Williams from GEM Solutions (UK) Ltd
Location :	Nottingham
Joined :	25 May 2011
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Reply : 30 May 2012

An agreed overdraft is probably the cheapest way to borrow.

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	Jacqueline Drury from Painter Jack
Location :	Nuneaton
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Reply : 30 May 2012

Gary,

Have a look at the Funding Circle. It's a new way for businesses in the UK to get funds and they should be able to help you.

www.fundingcircle.com

Regards

Andrew

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	Andrew Tomkinson from Website Leasing
Location :	Bicester
Joined :	15 May 2012
About :	Website Leasing will design, host, maintain and optimise your website with no minimum contract and no cancellation charges.
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Posts :	39 ( 15)

Reply : 31 May 2012

Before embarking on obtaining finance, have you considered re-negotiating the payment terms in some way, so more favourable for you?

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	Robert Dalgleish from Bookkeeping Etc Ltd
Location :	London
Joined :	18 November 2011
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Reply : 3 Jun 2012

I agree with Rob, negotiate the terms, maybe ask them to pay deposit in terms giving them bit of discount. You may give them discount if they can pay in full upfront. If possible shorten the payment terms say 14-30 days.

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	Harry Lee from SC Lee Accountant
Location :	Purley
Joined :	19 August 2008
About :	Tax and accounting Specialist
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Reply : 7 Jun 2012

Factoring or invoice discouting can include the benefit of credit checks and therefore it may be beneficial to pay an additional cost.The total requirement for ID expands or contracts in direct relation to sales and is therefore called a source of specific asset financing as the funding is secured against debtors.If you are a ltd coy you should register the charge over debtors at coys hse.

Regards

Chris Whiteley 07790 816592 Info@clientspal.com

Offices in most UK cities.

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	Chris Whiteley from Prometheus Accountants Ltd
Location :	Manchester
Joined :	05 April 2011
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