Invoices - a Factor for Careful Consideration; Martyn Freshwater, Regional Director of Lloyds TSB Commercial Finance, Reports on the Flexibility of Invoice Finance

The Birmingham Post (England), September 23, 2010 | Go to article overview

Invoices - a Factor for Careful Consideration; Martyn Freshwater, Regional Director of Lloyds TSB Commercial Finance, Reports on the Flexibility of Invoice Finance


Over the past decade, invoice finance, which includes factoring and invoice discounting, has become a mainstream form of funding for firms of all sizes across all sectors.

The flexible nature of these cash flow solutions means they can be adjusted to match a business' performance and the amount that can be borrowed grows directly with sales. This means that the more trading success a firm enjoys, the more funding can be released and reinvested for growth.

It is suitable for a variety of scenarios which require strong cash flow such as expansion and refinancing, to more complex requirements such as M&A activity and turnarounds. It's this flexibility and adaptability which has seen invoice finance become a key player and significant form of lending in the business funding landscape.

Going the extra mile To further underline its commitment to supporting businesses, Lloyds TSB Commercial Finance recently launched a pioneering Introducer Charter for lawyers, accountants and brokers.

Ensuring that its contacts in the professional community can offer the best possible service to their customers, the Introducer Charter pledges to provide a refund towards cash flow forecast costs, and keep its business introducers fully updated on the status of negotiations at all times.

Lloyds TSB Commercial Finance also enhanced its Client Charter which now enables prospective clients with a turnover of up to pounds 15 million to obtain an indicative lending decision within 48 hours, and offers the option to conclude a facility at any time, by giving 28 days notice without incurring any termination fees.

In addition to invoice finance, the funder provides asset based lending, hire purchase and leasing and can now facilitate access to additional loans for its clients and prospects of between pounds 10,000 and pounds 1 million under the Enterprise Finance Guarantee scheme. Eligible SMEs must have an annual turnover of between pounds 250,000 and pounds 25 million.

These commitments have contributed to almost 90 per cent of Lloyds TSB Commercial Finance's clients consistently saying they would recommend the funder to others over the past three years.

Boosting cash flow Since it can quickly leverage the value of a firm's assets to provide a vital cash flow boost, invoice finance is a crucial form of financing for turnarounds. It helps companies to put themselves on an even keel and release valuable capital when other routes to funding may have been closed off.

Recently, a branded corporate gift supplier which was badly affected by the downturn was able to return to profit and is now set to double turnover over the next eight months, after securing a factoring facility from Lloyds TSB Commercial Finance.

Redrok supplies a wide range of promotional merchandise, including branded pens, bags, T-shirts, calendars and business cards to a variety of clients including Holiday Inn, the NHS, Pioneer and the England Athletics team.

The economic downturn began affecting the business in March 2009. When we spoke to managing director David Williams, he explained: "It was awful, the first thing to be chopped from budgets was corporate gifts and in a few weeks our turnover had fallen by 80 per cent".

Lloyds TSB Commercial Finance provided a pounds 60,000 factoring facility, which leverages the value of a firm's sales ledger to free up cash flow. This is providing Redrok with the capital required to target new business opportunities and invest in new equipment.

Now the company, which currently employs eight people, is winning new contracts on a weekly basis and is on track to double turnover, taking it to seven figures by April 2011. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Invoices - a Factor for Careful Consideration; Martyn Freshwater, Regional Director of Lloyds TSB Commercial Finance, Reports on the Flexibility of Invoice Finance
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.