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Other Finance Options
NorthFunding have the expertise to explore many different types of funding for your business, whether it's to help grow your company, boost cashflow, or just to look after your day to day operations.
Speak to our team, and let NorthFunding guide you through the options that might be right for your business.
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Trade Finance
If you're buying goods from abroad to fulfil orders for your business, Trade Finance covers the cost of the goods while in transit from other countries. Used mainly by manufacturing companies, this is a great option to help boost cashflow, by delaying big spending and upfront costs on materials.
Funds are borrowed against the materials (with the supplier often being paid by the lender directly) and then repaid when your customer pays you (or pays the lender directly). It's a great solution which supports the entire cashflow cycle.
Purchase Order (PO) Finance
With PO Finance, you borrow funds against a purchase order raised, for work/services which have not yet been completed (as opposed to Invoice Finance, where you borrow against an invoice for completed work/services).
PO's need to come from well established businesses, and whilst more expensive than IF, you can access funding much earlier in your cashflow cycle.
Purchase Order
Recurring Credit Facility (RCF)
RCF are much like an overdraft, creating a pot of funds that you can dip into, and then repay. It can be a flexible funding solution for businesses, set up quickly and cost effective too if you're only looking to borrow small amounts over short periods of time.
Directors guarantees are usually required, sometimes security over other assets.
Payables Finance
Businesses are able to upload their incoming bills to the lenders system, who will then pay the invoice to their supplier, and then the business is able to pay the lender back in monthly instalments agreed at the outset, typically from 3 to 12 months. This is a great option for businesses looking to grow and would benefit from spreading costs over the next 3 months.
BNPL
INVOICE
Credit Insurance / Bad Debt Protection
If you're raising invoices to other businesses, but are concerned what impact a customer going bust would have on you, Credit Insurance can offer protection against losses. If a client was to go into administration / insolvency, you would usually be covered for up to 90% of the value of an invoice. Credit insurance does not cover for customers paying late, or for disputes.
It's often included in some Invoice Finance facilities but can be purchased separately - and in fact can offer additional benefits if secured directly from an insurance provider.