Supply Chain Finance maximises a healthy cash flow for suppliers when dealing with larger customers, often with extended payment terms.
It looks at a buyer’s strong credit rating to advance payment to suppliers.
Asset finance releases cash against existing assets or can be used to obtain additional assets.
Existing Assets: A loan against an asset and the lender takes security over the asset.
Additional Assets: Payment via regular instalments for an asset over an agreed period.
Also known as Equipment Leasing, Hire Purchase or Asset Refinancing.
Tax Bill Finance is a form of finance for businesses that feel the squeeze at the tax pinch points; usually around January and April.
This includes finance on VAT Bills, Corporation Tax, Payroll/PAYE, and rent.
Like the commercial mortgage, this type of finance uses property to secure a loan.
However, this type of finance funds against the value of a proposed completion rather than existing asset, providing finance during the construction period.