Turnaround

When a firm is under significant financial pressure, invoice finance, which includes factoring and invoice discounting, is a highly effective source of business funding for turnarounds or restructurings.

Even successful companies find their finances can quickly be put under pressure by bad debts, unexpected costs, onerous business loan repayments or an unsupportive funding partner.

However, many firms which experience trading or cash flow difficulties may still be asset-rich and Lloyds TSB Commercial Finance’s facilities can unlock the hidden value within the entire balance sheet to fund a company through tough times.

Rather than focusing on recent difficulties that a business may have been experiencing, we consider the strength of the company’s strategy and the management team’s ability to execute it.

Our facilities are a secure and flexible way of generating cash and because they are predominantly revolving credit in nature, they do not require a fixed number of payments.

This is particularly beneficial for companies looking to fund a turnaround or restructuring as it helps to provide liquidity for a firm’s day-to-day operations, without the burden of heavy repayment schedules.

Lloyds TSB Commercial Finance’s invoice finance solutions, which include factoring and invoice discounting, can be used to:

• Ease the burden by refinancing existing facilities that have become onerous and which are potentially having a negative impact on your business’ cash flow
• Free up working capital to reinvest into the company, enabling you to pursue new opportunities without worrying about the impact on liquidity
• Help you to concentrate on strategic objectives rather than the day-to-day management of the sales ledger. Factoring facilities in particular reduce the administrative burden by issuing statements and reminder notices on your business’ behalf
• Cash is crucial to the long term prospects of a turnaround or restructuring and it only takes one bad debt to send a business back to square one.

Lloyds TSB Commercial Finance’s Debtor Protection policies protect a company’s sales ledger against the risk of late payment or customer insolvencies and are becoming an increasingly crucial part of the turnaround mix.
Contact us to find out more about how Lloyds TSB Commercial Finance’s flexible turnaround solutions can assist your business.

(Alternatively to find out how much you can raise by using our factoring and invoice discounting services, use our quote engine.) 

The provision of credit or leasing services by us is subject to your meeting our Credit approval.  Please ensure that you only apply for credit or leasing services that you can comfortably afford.