CVA Funding Solutions for Companies
Your company may be busy and growing but finding funding to ensure you safely continue to grow is tough, especially when your business is in a company voluntary arrangement (CVA). As you know your company has no credit rating because it is trading in a CVA. Very few banks or lenders will support your growth plans. Finance providers and lenders make decisions to lend based on the amount of risk they are prepared to accept. Typically, businesses under a CVA are perceived as ‘risky’ as they have failed to pay their debts in the past. As such, there is caution as to whether the loan will be repaid, so many lenders steer clear. It can be the most frustrating part of voluntary arrangements – no credit rating equals limited funding facilities. This can prevent you from growing your business.
IT DOESN’T NEED TO BE LIKE THAT!
However, we have relationships, from our years of experience with CVAs, allowing us to have a variety of lenders who will take such risk. They also know that we can tell a good CVA from a poor one! Besides, the balance sheet of a company in a CVA is much healthier than thousands of other businesses out there!! All that is required is some form of an asset as security. It can be a business asset or even your home.
The lenders will almost always require a personal guarantee for the full amount that was borrowed whether it’s a director of the company or a 3rd party.
So, even if your business is in a CVA you can still raise turnaround finance. Here we discuss the options available.
- Business loans
- Invoice finance
- Asset finance
- Cash advances
Available funding options
Invoice discounting (factoring)
a company can raise money by selling its customers invoices to a funder or bank. The funder/bank will provide you what is called an advance. They will then chase the customer for you, and take their cut out of the invoices paid, giving the rest to you. Find out more on the option here.
Using assets your business owns and unlocking tied up cash from them. Ultimately you sell the asset to the refinancer at a certain, agreed cost based on the assets value. You can then buy the asset back on a new finance plan freeing up a cash sum
Lenders will value the stock held and use this as a form of security to lend you some cash. Once the stock is sold, the finance can be repaid.
We can assist you with sourcing the options above and assure you flexibility through lending terms and affordability with monthly rates, to say the least. We provide client-to-client support and expertise and we can partner you with our specialist, trusted lenders, hassle free.