Blog

Do you need more funding than your lender will allow?

Date 8th September 2016 //
Author Legion Trade Finance
Computer Hardware, Keyboard, Computer, Electronics, Hardware
Alternative business funding, traffic light, icon

Find your business
funding

£
Enter a funding amount between £500 and £50,000,000.
Please indicate what you need the funding for.

As the UK economy continues to recover, the demand for working capital from trading businesses will continue to increase.

There is now a plethora of choices from traditional bank finance in its various forms, ABLs and the rise of alternative finance.

Many SMEs will have a single lender, often the bank or an ABL providing their various funding requirements. This can bring restrictions, especially in a period of recovery and growth. Trading businesses increasingly need more funding than their lenders will allow.

The issue is that many lenders follow formulaic lending criteria where only a discounted percentage of a requirement can be advanced, and even then, only within an overall facility limit.

So when a business utilises all its funding lines, then that's it, no more advances. And the recovery and growth grinds to a halt. Wrong!

Legion Trade Finance has been working with all types of other lenders to deliver incremental funding to existing facilities. Our diverse product range includes trade finance for SMEs and large corporates, supplier payments, LCs, stock finance, export funding and special situations lending.

Our solutions are increasingly being used by trading businesses to top up their current facilities. For example, Legion's funding can be used to finance a specific trade or shipment as a stand-alone facility, outside of current funding lines. We can also add to an existing facility that may be maxed out. If an importer can only finance say 80% of a shipment with their existing facilities, then Legion can agree terms to sit alongside the lender and deliver the balance, giving the client 100% funding.

Clients and their advisers naturally welcome Legion's incremental funding: it satisfies the demand for extra finance (often for just short periods) and removes the need to change lenders. Most importantly, Legion's funding facilitates trades that otherwise would not be possible, improving their clients' bottom line.

So just because a trading business has maxed out its current facilities, don't think that stagnation or a wholesale refinance is the only solution.

Legion offers something different!

Alternative business funding, traffic light, icon

Find your business
funding

£
Enter a funding amount between £500 and £50,000,000.
Please indicate what you need the funding for.
Related Articles
Sphere, Rug

Preparing your business for the festive break - An ABF business guide to Xmas

Depending on your industry Christmas can be either welcomed or dreaded! No matter what ind...

LEARN MORE
Text, Paper, Business Card

Start-up business planning – Read this before you start

Launching a start-up can be tough! Luckily with the right support and tools there's no re...

LEARN MORE
Calculator, Electronics

Accountancy software - How to chose the right software for your business

Accountancy software - How to chose the right software for your business...

LEARN MORE
Person, Human, Text, Head

Choosing a Customer relationship Management System (CRM) for your business:

Choosing a CRM for your business can be an upward struggle! Which one suits you best, what...

LEARN MORE