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When the banks say no

Your first reaction is to probably panic, but try not to, easier said than done? Well not really.

Not only is our economy suffering, but as it seems globally everyone is in a bit of financial bother. In Ireland, their dreams of levelling the economy by 2013 seem to have been shattered due to the euro zone crisis and the lack of lending from the banks. They are depending on the banks getting their acts together to allow more business lending, thus stimulation the economy.

So like many business, it is a case of “where can I get my hands on some money so I can buy that truck, pay my staff and bills and purchase more materials”.

Well, our advice, don’t even bother with the banks, especially in the current climate, they will soon realise that people are loosing faith in the banking system, then they will really have to do something amazing to gain their customers back.

Instead forget all those ideas of financing, and try not to sell your own house, there are other easier solutions.

Factoring provides a way of gaining the capital tied up in invoices. These are the invoices you will be sending out to clients for payment. Now, normally you may end up waiting up to 90 days for payment, depending on the payment terms, but with factoring, you can have that cash tomorrow. In 24 hours, if your clients are credit worthy, a factoring lender can transfer up to 85% of the amount you are owed in your invoices, right into your bank. Then you have the options of continuing to chase clients for payments yourself or handing everything over to the factoring lender to do, which takes a great weight off your shoulders and leaves you with the finance you need to continue with business. So many Small to Medium enterprises now use factoring as a way to raise funds.

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