Monday, 22 June 2015
There have always been two types of funding requirements that have historically been very difficult, if not impossible to find solutions for.
The first was how do you raise finance against the value of signed contracts for products or services that are paid in monthly installments, such as maintenance agreements, security agreements, subscription agreements, and most importantly Software as a service licence agreements. There is now a new type of finance that solves this problem.
The companies that are applying for this type of funding must have a turnover of at least £300,000 and been trading for at least two years. They must have been trading with their client for at least 1 year OR they have sold the same type of service to different clients for at least 2 years. The downside is that their customer must have a turnover of at least £15m if based in the UK or £50m if based abroad. This type of finance will fund up front 80% of the client’s next 12 months worth of regular payments.
The second type of funding is stage payments or applications for payment in the construction industry. There are no limits on debtor concentration and foreign debt is also acceptable.