Working Capital Solutions

What is a Working Capital Solution?

All businesses need working capital, and typically as a business grows the amount of money it needs at hand increases. There are a variety of different funding solutions we can help you secure – check out these options:

Overdrafts

Typically arranged for a year, with interest paid on the funds utilised. An arrangement fee is charged. There is some good sense in the adage that businesses typically need an overdraft equivalent to 10% of annual turnover. If you are looking to negotiate a larger overdraft with your incumbent bank or find new bankers we can help, get in touch here.

Invoice Finance

Loans of this type are typically priced as a lender margin over the Bank of England Base rate (often just called “the base rate”) or over LIBOR.

Margins charged by lenders are typically from 2.5% upwards. There is usually an arrangement fee of 1% of the loan value upwards. Some lenders charge early repayment fees. Lenders offer both variable and fixed rates.

Merchant Cash Advance

Merchant cash advances are a relatively new concept – you can borrow a loan typically £5,000 to £500,000 if you take card payments on a regular basis. At the end of the day the lender takes a small percentage of your card receipts towards paying the loan interest and repayments. The amount repaid each day will vary with your takings. You will typically need £3,000 per month in card receipts and 6 months trading records. We go into this product more here.

Stock Finance

The more you trade, the more stock you need to have rapid access to so that orders can be met and products put together. If you have money tied up in stock we may be able to source a loan either against the stock or more likely as a unsecured business loan. Get in touch here.

General purpose Business Loan

Sometimes you need to fund a specific project or a short term lump of cash is required to meet a bill, tax deadline or take advantage of a supplier bulk purchase discount. Whatever your need we can source short term business loans from £5,000 – get in touch here.

Pricing

Loans of this type are typically priced as a lender margin over the Bank of England Base rate (often just called “the base rate”) or over LIBOR.

Asset Finance

Businesses typically need assets to function – from cars to computers and from bandsaws to boats, whatever industry you are in you will need “stuff” and “stuff” absorbs cash. Rather than pay for these assets in one lump sum it might be better for cashflow to spread the payment using asset finance. Asset finance is one of the main requirements of our clients and you can find out more about it here.

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Steve Carter

Nathan Foster / Funding Friends

We worked with Nathan Foster on a complex refinancing deal. He worked tirelessly to deliver a solution, staying positive despite all the bumps in the road, and we ultimately achieved a very successful outcome. I would happily recommend Nathan and Funding Friends to others.

Ross McDonald

Expert Advice and Support from Andrew Robertson

Andrew Robertson was a source of constant support in this process. Always willing to help and advise, he was at the end of a call or email for what seemed 24/7 during this our funding application. Knowledgeable, diligent and thoughtful, he helped facilitate achieving our funding goals and helped us persevere through some tougher challenges. I would highly recommend him and Funding Friends.

Victoria Sylvester

Lisa Walls-Hester was amazing

Lisa Walls-Hester was amazing. Really supportive and clear, and helped a lot to keep everything moving along. Her credible relationships with lenders and knowledge really helped us to find the right lender to work with.

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Funding Friends is a trading style of Funding Friends Ltd, registered in England No. 12693505

Funding Friends Ltd is authorised and regulated by the FCA No. 935775

Funding Friends is a member of the NACFB registration number 28750

Funding Friends operates as a commercial finance broker and is not a lender. Any finance or products arranged through Funding Friends is entered into entirely at your choice and is at your risk, and you are advised to consult qualified professionals outside of Funding Friends to make the right decision for your needs and circumstances. Your property or other assets may be repossessed if you do not keep up repayments on any debt secured against it. Funding Friends may receive a commission or finder’s fee for effecting introductions to lenders or third parties.