...and when it comes to funding and managing cashflow there are a number of solutions which can benefit both large firms and small businesses alike- a solution which is often overlooked is Professional Fee Finance.
The rise of Fee Finance
Fee Finance has been available to businesses for many years, yet not all business owners and accountants are aware of how it can benefit them.
Where cashflow can be an issue, with Fee Finance, businesses can profit from a funding source that doesn’t affect their existing working capital facilities, banking facilities, or asset financing lines, leaving existing capital to be invested elsewhere.
Overall, Fee Finance should form an essential element of a business’ overall funding suite and sits comfortably alongside asset finance, invoice discounting, property finance and overdrafts.
Advantages of Fee Finance
One of the main advantages Fee Finance can bring for businesses is the ability to accurately predict their cash flow, as it coincides with monthly income. However, Fee Finance isn’t just about spreading the cost of accountancy fees for accountancy clients – simplicity, security, and low transactional costs are all key to the success of this funding solution.
New start-ups often find that cashflow and the ability to raise capital can be a difficult task. The Fee Finance industry has embraced the spirit of small businesses and brings benefits to SMEs and larger business alike. It is a stand-alone, niche, working capital product that businesses can utilize, irrespective of size.
Existing lending and securities provided to mainstream lenders are not affected, and it is a relatively inexpensive form of finance, that will compliment a business’ existing funding lines, rather than replacing them or using them up.
Low transactional costs
Fee Finance is usually written on a running account basis, allowing for renewals and mid-term adjustments to be accommodated using an existing facility, without the need for a new finance line to be set up every time a new client invoice is raised. With no ‘upfront’ documentation fees, or facility fees commonly found in other forms of finance, this makes it an accessible and relatively low-cost funding alternative.
About Keys Finance
Keys Group is an independent finance house based in Belfast and have been successfully transacting Premium Finance and Professional Fee Finance for over 25 years. Primarily working with insurers, insurance intermediaries and accountants, throughout the UK and Ireland.
Fee Finance can be used to fund work completed with agreed invoice values, project work, tax strategy planning, corporate finance and for aged debts, allowing the client to spread the cost of their professional fees and pay in instalments, ranging from 2-12, all without the need for Personal Guarantees.
For more information on how Keys Finance can help you spread the cost of your fee invoices, please get in touch with your usual Gerald Edelman contact.Back to top