Factoring to support interest free fianancing

[SGPS]

Hi all

Im just in the process of setting up a business which will offer 3 months interest free credit on the services we offer. I am looking at a business loan to support the financing however given the nature of my venture at this point i am unsure of wether i will be able to raise enough funds to support the growth of fianance sales.

So i was just curious to see if there where any special types of factoring services that could help ease cash flow from an invoice to be potentially payed over a maximum of 3 months.

I can find alternative funding from a friend of friend who owns a equity finance company however if possible i would like to see if i can do this on my own without the input from the proposed firm who i would prefer not to be involved with.

I apologise for not giving details on the business however at this stage i would like to protect my venture.

But if anyone can point me in any direction that would be greatly appreciated.

Many thanks in advance

 

[Paul Kelly ICHYB]

Be careful - have you nchecked the legalities of your plan?

If you are offering credit, interst free or baring, I believe you either need to be a finance company or use a finance company. Just offering it off of your own back might be illegal!

 

[SGPS]

I can assure you all the legalities will be correctly followed and an application for a CCL licence will be applied for etc etc.

many thanks for your concern

 

You are in a strange situation where you could factor (potentially) the debt if you gave 90 day trade terms, but not if you formalised it into an interest free credit scheme.

IFrom a sales perspective I would question the value of this scheme since most business customers would expect 30 day terms (and would unofficially extend this to 45 / 60 days) so what you are doing is adding an extra layer of bureacracy and potentially risk for very smalll gain.

 

[SGPS]

Sorry i may have forgot to mention that this aimed at general consumers and not the business market.

Apologies for any confusion

 

[SGPS]

The interest free part is merely a marketing ploy

 

Sorry i may have forgot to mention that this aimed at general consumers and not the business market.

Apologies for any confusion

I'm afraid you don't have anything factorable.

so your options are bank overdrafyt (if you can offer suitable security, or using your friend for equity.

Before doing either of these I would look very closely at whether your offer will generate sufficient of the right sort of business to be worthwhile.

 

[SGPS]

Thanks for the reply i really appreciate your comments. I do feel that the services i offer will work and help to create a raport with my future customers to help me be seen as benefactor, in return making it a viable proposition.

Thanks again for help i think we can now close this topic of discussion thanks

 

[Anglia Finance]

There is a lender in the market that will buy loan agreements of you for x pence in the £ (depends on the business/risk/customers). So if you get your CCL, get the agreement signed these are then saleable, however this is more likely to work for your business if the loans were over a longer period and included interest so that you retain the margin in your sale.

 

[Vacman2000]

You will also need to register for data protection act

 

[sejal545]

Hi all

Im just in the process of setting up a business which will offer 3 months interest free credit on the services we offer. I am looking at a business loan to support the financing however given the nature of my venture at this point i am unsure of wether i will be able to raise enough funds to support the growth of fianance sales.

So i was just curious to see if there where any special types of factoring services that could help ease cash flow from an invoice to be potentially payed over a maximum of 3 months.

I can find alternative funding from a friend of friend who owns a equity finance company however if possible i would like to see if i can do this on my own without the input from the proposed firm who i would prefer not to be involved with.

I apologise for not giving details on the business however at this stage i would like to protect my venture.

But if anyone can point me in any direction that would be greatly appreciated.

Many thanks in advance

hi sgps
please go to high street bank like hsbc 90% on invoice next day 24/7 turnover minimum 1 million pounds

 

hi sgps
please go to high street bank like hsbc 90% on invoice next day 24/7 turnover minimum 1 million pounds

What !!!????

 

[Ian J]

please go to high street bank like hsbc 90% on invoice next day 24/7 turnover minimum 1 million pounds

Oh dear, I hope that the rest of your advice is better than this.

Neither HSBC nor any other factoring company will offer facilities to companies who are selling to the general public as factoring is only available for companies selling to businesses