Working
Capital
Solutions

As everyone in business knows, cashflow is vital to the success of any venture. In times of economic turbulence, it is even more critical to ensure your business has sufficient cash to maintain its operations and pay its way.

This can be achieved in a number of ways by using tried and tested funding instruments or making your business processes more efficient to positively impact the cash position of your company. Here we list a number of ways we can help – but this is not exhaustive. If any of the following solutions strike a chord with you then please don’t hesitate to get in touch.

Invoice Finance is a generic term to cover products and services such as:

Invoice discounting

Factoring

Asset based lending

Receivables finance

All of these to a greater or lesser extent achieve the following:

  • Client receives up to 90% advance of invoice value
  • Freedom for business to retain control of their sales ledger or to outsource this to the lender
  • Invoices financed can be domestic or export sales
  • Typically, a confidential facility or can be disclosed where the funder requires greater visibility

Do you use invoice finance facilities and service customer overseas or trade in other currencies? 

Export factoring could support your cashflow.

Export factoring is the purchase, funding, management and collection of short-term
accounts based on goods and services provided to foreign buyers. We provides services to
support with invoice finance – finding the best funder for each client’s specific needs – and
accommodating trading with other currencies through export factoring.

So if you trade overseas, or you’re thinking about it, we can support you to develop
your export business whilst supporting a healthy working capital and limiting
challenges often faced by businesses expanding overseas. 

How it works

1. Funder confirms a credit limit on supplier’s overseas buyer.

2. With the limit, supplier ships the goods and provides proof of shipment to the funder.

3. Funder advances up to 90% of the invoice value to the supplier.

4. Buyer received 120 days of credit period.

5. Buyer pays funder, and funder pays out the balance to the supplier.

Trade finance can provide upfront funding against confirmed orders, open up letters of credit facilities on your behalf, and provide direct supplier payments or even a cash advance.

Suitable for businesses who have confirmed purchase orders/supply contracts from reliable sources. You can secure stocks but you have limited working capital to fund the purchase.

Using a Trade Finance facility is straightforward:

  • Place your order with your supplier
  • The Trade Financier will pay your supplier against shipping documentation or open a letter of credit for up to 100% of the purchase price of the goods
  • The goods are shipped and ultimately delivered to the client’s customers
  • The client will repay the transaction either by way of:
  • Within 90 days from the transaction date
  • Through a linked to invoice finance facility

There are numerous business loan products that have replaced traditional bank products that provide working capital from SME businesses.

The emergence of creative fin-tech lenders has plugged the gap left behind the regression of the main banks in the last dozen years or so. Choosing the right provider for the right circumstance of your business is what we do so click this link if you would like to talk to a member of the team about what options are available, please get in touch.

This is a growing segment of the lending market and provides a solution to many business funding requirements quickly and efficiently.

A business might need cash for a project, an acquisition or just additional cashflow through a difficult period. By utilising assets that have equity in them, either inside or outside of the business, you can release monies to be used in the business and repaid either out of cashflow, sale of the asset, or refinance of it. This can give from £50,000 to £5,000,000 of funding to a business quickly and efficiently over a term of up to 36 months.

This is more often premium priced because of the risk attached, but it tends to be on a ‘pay for what you use’ basis. Interest can be serviced or rolled up depending on the security and circumstances giving maximum flexibility. The main points to consider for a loan like this are:

  • What is the security being offered?
  • Can the loan interest be serviced?
  • How will the loan be repaid?

A flexible and popular funding solution for businesses that have available assets and need to make decisions really quickly.

Got a complex working capital problem?

That’s our speciality. For a free no-obligation discussion feel free to contact us


Tax Funding

One of the lesser known solutions in the working capital space is the specialist lending available to fund tax obligations.

The market has developed tools to assist businesses with funding different tax scenarios and the use of these different solutions is becoming more widespread as lenders refine their products. The important thing to understand is these products are very proactive. Typically clients looking at this type of funding to support working capital would look to engage well ahead of time, to fund current and upcoming tax obligations.

Download our Tax Funding PDF for more details or contact us to speak to our friendly team.

 

Examples of tax funding facility

1. VAT Loans
These are short-term loans specifically designed to cover VAT liabilities. They provide businesses with the necessary funds to meet their VAT obligations on time. These typically fund VAT balance over the following quarter in 2 or 3 capital payments.

2. VAT Bridging Finance
This type of financing is used to bridge the gap between a business incurring a VAT expense and subsequently reclaiming it. Typically used in property transactions where the property has a VAT liability as part of the purchase. Funding provided in bridge style with the lender funding the VAT payment to HMRC and directly receiving the proceeds of the VAT claim.

3. R&D Tax Credit Advance
This is a form of funding a company can receive as an advance against its expected R&D tax credit refund. Loan is structured against a business‘ R+D claim with the advance a fixed percentage. Repayment directly to lender who would then distribute any proceeds after deduction of interest and fees.

4. Corporation Tax Loans
Loans designed to help companies meet their Corporation Tax obligations. They are often structured to align with the company’s tax payment schedule. Profiled over 12 monthly payment or less allows clients to manage and structure cashflow spreading the corporation tax balance.

Spreading VAT payments

Revolving VAT facility

We supported a services business to spread their VAT burden to soften the impact on cashflow, using a low rate VAT facility.

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Invoice Finance for Growth

Disclosed IF

Working capital was needed to support wholesale business to move from a licensed model to wholesale model.

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Term loan facilitates opening of new retail outlet

Term Loan

Term loan provides working capital for our client to launch B2C outlet.

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Refinance

CHOCCs (Invoice Finance)

A funder mismatch solved by the CCBS team.

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Cashflow Solutions – Growth Capital

Growth Capital

An established business was looking for working capital to support their ambitious plans - we helped smooth the way to £500k of growth capital.

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Healthcare funding for growth

Short Term Secured Funding

A family-owned pharmacy-based retail and wholesale business was looking for funding for strategic acquisitive and organic growth despite several barriers to securing funding from traditional...

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VAT facility to support cashflow

VAT Loan

Longstanding marketing and digital agency looking for working capital support.

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Property Refinance with Equity Release

Mortgage

A manufacturing business' mortgage was due for renewal but supply chain and cashflow issues were hampering progress.

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Asset refinance for working capital purposes

Asset Finance

An established North East business needed cashflow headroom at short notice after a difficult trading period. We unlocked the finance within three weeks.

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Asset refinance for working capital

Asset refinance

A North East manufacturing company needed an injection of cash quickly to complete a large order. We refinanced machinery within two weeks to provide the...

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Funding for Growth (Services)

Invoice Finance Facility

A services business was looking to grow and take advantage of a significant opportunity in their chosen marketplace.

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Small unsecured loan to support property improvements

Business Loan

A property investor needed to make essential upgrades to properties to generate rental income.

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Further support for existing lab testing client

Unsecured Loan

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Funding for Growth

Term Loan

Well-established group of companies looking to expand capabilities outside of the North East.

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Working Capital for Manufacturer

Working Capital Loan

Expert manufacturer was experiencing creditor pressure due to changes in underlying trade and delays in contracts starting. We helped them access working capital.

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Bridging Loan

Short Term Secured Funding

A new client was introduced to us by their bank, as they were looking for bridging finance to facilitate completion of a development, encompassing family...

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Stock Facility

Trade Finance

Longstanding fashion retailer with strong local and online presence came to CCBS looking for working capital support.

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MBO in the Construction Sector

Asset-based lending

An existing client whom we had assisted through the Covid period was exploring the possibility of an MBO of fellow shareholders. We helped secure the...

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Funding for Growth – Innovative Funding Solution

Short Term Secured Facility

We supported a leisure equipment business looking to grow, with an innovative funding solution.

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Working Capital to Deliver Substantial Contract

Working Capital Loan

A large new contract for a healthcare SME required substantial IT investment. We secured two loans to provide working capital for now, and the future.

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Credit Insurance

Credit Insurance Whole Turnover

Our client wanted to mitigate the risks of a client failure on their business - a safety net for the future.

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Working Capital

Business Loan

A well-established restaurant was looking to open its fifth site with help from CCBS Group due to low working capital headroom.

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Acquisition as part of a buy-and-build strategy

Invoice Finance, Asset Finance and Secured Property Loan

CCBS Group has supported this client through 3 previous successful acquisitions in their buy-and-build strategy. The fourth was also a success for all.

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Short Term Secured Funding for Property Investor

Short Term Secured Loan

Taking just 13 days to complete, this deal gave our client headroom to restore balance sheet liquidity quickly following a land purchase.

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Working capital loan to support turnaround

Business Loan

A client with a clear plan and a supportive loan provider makes for a successful CCBS deal.

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Short term funding to support property entrepreneur

Short Term Secured Funding

We supported an ambitious entrepreneur with the right funding solution to provide working capital for his property portfolio.

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Civil Engineering and Plant Hire Funding

Hire Purchase

New Lending Despite Difficult Track Record

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Increased Funding Line for Automotive Business

CID

A family business required a less restrictive funding line but there were challenges due to their concentrated trading with key customers.

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CBILS to Support Post-COVID Business Opportunity (Medical)

CBILS

An ambitious business saw an opportunity post-COVID and required a specialist funder to support them.

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Working Capital Injection for Engineering Business

Loan

Sales had increased significantly for this business following the COVID-19 lockdown, meaning they needed an injection of working capital.

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Funding Line

Working Capital

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New Invoice Finance Facility – Manufacturing Business

New Invoice Finance Facility

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Short Term Secured Funding

Short Term Secured Funding

Short Term Secured Funding for established tier one supplier into the NHS.

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R & D Tax Bridging Loan

R & D Tax Bridging Loan

Finding the right funder quickly is the key to many successful deals, like this one we worked on for an automotive client in the North...

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Cashflow Loan

Cashflow Loan

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Funding in Australia

Working Capital

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Leisure/Property Development

Short Term Secured Finance

Prominent city centre night club operator looking to change business model. Having built brand and successful operation out client wanted to work with younger promoters...

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Construction

Construction Invoice Finance

Client looking to acquire a well-established construction business as part of a larger 'buy and build' strategy. As with any transaction of this type, working...

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Recruitment

Invoice Finance

Temporary manpower and permanent placement agency. Established operators in the sector.

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Arts and Craft Supplies

Trade Finance, CBILS

The business is a wholesaler of Arts and Crafts supplies, primarily trading via online platforms.

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Personal

Regulated Hire Purchase

Personal client referred into us looking to purchase unique ex-military service vehicle which replaced their existing vehicle.

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Construction

Short term secured facility, Commercial mortgage

Sizeable business which has provided services into the construction sector for over a century.

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Manufacturing

Short Term Secured Facility

Specialist manufacturer with a unique and patented product still in the process of being fully established.

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Recruitment

Invoice Discounting

Temporary and permanent placement agency requiring a new funding facility to take the business forward.

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Hospitality

Business Loan (CIBILS)

Very popular neighbourhood restaurant, with regular and solid client base. Operations had always been profitable and plans were in place for growth and development of...

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Manufacturing

Business Loan (CBILS)

Longstanding traffic management business which had gone through partial management buyout in 2019. Buyout aimed to deliver new growth and impetus.

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