“This newsletter pro-

vides an overview of

the commercial fi-

nance market and

some of the funding

options available.

For more details,

please get in touch”

- Chris Hanlon, Director of

Connected Finance Ltd

Development funding—lenders open for business

The Gift of Cashflow In business, ‘cash is king’, and sourcing a traditional overdraft facility from your bank to

fund your working capital cycle is not always straightforward. But there are alternative

options, such as Invoice Discounting.

So what exactly is Invoice Discounting? Put in simple terms, you are able to use invoices

you have sent to your customers to source funding from a lender while you wait for that

invoice to be paid, bridging that gap between when you pay your suppliers and when your

customers pay you.

This is a tool which can be just as easily used to aide growth as it is to solve existing cash

flow issues. And with some bespoke and innovative products now available, it no longer

has to be seen as a possible weakness of your business.

Facts on Invoice Discounting Q: What level of funding can be achieved?

A: Usually 80-90% of the invoice value can be funded within 24 hours

Q: Do I have to factor all of my debtors?

A: No. Historically this was the case, but there are now a number of providers who will

allow you to finance individual invoices as and when you need to.

Q: Isn’t it expensive?

A: Compared to a traditional overdraft facility, the cost is higher. However, if you are una-

ble to obtain an overdraft from your bank or you need a higher level of funding, invoice

discounting can be the perfect solution.

Newsletter Dec 2016

In This Issue

The Gift of Cashflow

Development Funding-

Lenders Open for Business

Sourcing Finance

Investment Funding

With interest rates at a

record low and likely to

remain so for the foresee-

able future, property in-

vestment remains very

attractive to those seek-

ing to achieve a return on

their investment.

Despite the attempts of

the Government to in-

crease taxes to put off

investors, a strong return

can still be achieved and

there are lenders in the

market who are keen to

support you.

Many property owners

are now looking to move

their portfolios into limited

companies, to combat the

change in taxation on

rental income.

However, this does mean

that a standard buy-to-let

mortgage will no longer

work, but there are lend-

ers who will provide com-

mercial mortgages

against property portfoli-

os, including the likes of

HMOs (house in multiple

occupation) which cannot

be funded by BTL mort-

gages.

So there are options

available, and your ac-

countant will be able to

guide you as to which is

the most tax-efficient for

you.

Property Development Funding

Development Funding -

Lenders are OPEN for business Since the crash in 2008, achieving finance to carry out residential or commercial

property development has become significantly more difficult. With most of the

high street banks withdrawing from this market altogether, this has left many de-

velopers needing to look elsewhere for funding.

However, this has led to some positive change, with a raft of new ‘challenger

banks’ and alternative funders coming to the fore. And these are all very much

open for business.

There are a variety of funding options available, from short-term bridging finance

to enable you to secure a plot of land, to mid-term development finance to fund

the building project itself. Different lenders will look at cases in different ways, with

some providing finance against the project cost, and others against the end-

development value.

Contact Us

Give us a call for more infor-

mation about how we can

help you.

Connected Finance

07540 784 293

01304 849 129

info@connectedfinance.co.uk

Visit us on the web at

www.connectedfinance.co.uk

Sourcing Finance Seeking funding for your business can be a daunting prospect. Whether you are

looking to finance growth or consolidate existing debt, knowing where to look for

support and how to approach lenders sometimes feels like a hidden secret.

The good news is that it’s an ever-growing market and there are more lenders

than ever before to consider. In fact, on average, around 1-2 new lenders are en-

tering the finance market every month.

While this does not make your task any simpler, it does mean that there is more

choice, and therefore more competition to enable you to get the right deal for you.

And not only are there now more lenders, these new lenders are bringing new,

innovative products to the market which traditional high-street banks are not able

to provide. In this ever-changing economic environment , it is this flexibility which

comes to the aide of many businesses.

With interest rates at an all-time low, there has never been a better time to borrow.

If you would like to talk to us for expert advice on how to go about sourcing fi-

nance, please get in touch.

Connected Finance Ltd

Connected Finance Ltd is a limited company registered in England & Wales. Company Registration No. 10415388. Registered Office 10 Firs Road, Woolage Village, Canterbury, Kent, CT4 6SH.

Connected Finance Ltd are credit brokers, authorised and regulated by the FCA – reference number 762651.

Helping local businesses find finance to achieve their goals

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