Raising Finance Fast

“I am trying to raise some cash to help my company trade on. Can I sell my company’s stock and assets to raise some cash?”

The majority of directors have at one time or another kept their company afloat with personal cash, whether it is a personal loan or a credit card. Whilst we know in an ideal world this shouldn’t be done, it may be unavoidable for some directors in the current business climate because of non-cooperating banks in the UK. 

After the banks, the next normal calling point for directors may be to speak with a member of the family or to seek an investor who will inevitably want a stake in your company, usually by you selling shares (stock) and or assets. In the normal course of trading this does not pose a problem, however, when a company is insolvent there must be more care taken as you need to assess any impact there may be on creditors. Generally, if you can prove that it is in the best interests of the creditors then you may be on solid ground. The problem is that it is rarely that simple and specialist insolvency and/or legal advice should be taken to ensure creditors’ interests are secured.

Very often, the company may have tangible assets sitting on the balance sheet, work in progress or due invoices that can be used in a number of ways to generate the money that you require. Another option may be to refinance the assets even if already on finance, so it is always worth a quick chat with us to see if this will solve your problem. Most directors know about factoring, but did you know that you can sometimes get a one from invoice? Provided the debtor book is of sufficient quality then this may be feasible. We can arrange this and it could help with short-term cash-flow issues. 

So, in summary, we suggest: 

  • It may be worth refinancing your company assets, equipment and machinery even if already on finance.
  • A one-off invoice will provide cash fast for your company and you can often obtain a decision within 48 hours.
  • You may also want to think about re-mortgaging company bricks and mortar if there are any.

If you would like to speak with one of the team to see how we can help your business on, call us on freephone; 08000 746 757 or email us at enquiries@jamesonsmithco.co.uk.

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