Corporate Finance Services

Invoice and Trade Finance

SFCapital is an independent provider of invoice and trade finance solutions. We are not tied to any single organisation and can therefore provide exactly what you need. Our role is to understand your problems and challenges and then using our knowledge of potential funders select the most suitable provider.

Invoice Finance is a well established way for suppliers to improve their cash position and is now used by approximately 50,000 companies in the UK. It allows a supplier to receive immediate payment of its invoices. The provider of the Invoice Finance services will pay the supplier the value of the invoice immediately and will subsequently receive its payment when the customer settles the invoice. There are two distinct forms of Invoice Finance;

Factoring - Using this approach the Invoice Finance provider takes on the responsibility of collecting payment.

Invoice Discounting - Using this method the supplier retains the responsibility for collecting payment and liaises with the customer as it currently does with regard to all aspects of payment collections.

The approach taken will depend on the trading position of the supplier and the preference shown by the Invoice Finance provider.

Ninety per cent of the market is taken up by the major high street retail banks, largely as a result of existing banking relationships. However, there are a number of well established providers as well as major international banks establishing receivables financing businesses in the UK that are more aggressive in the market and able to offer more attractive terms than those available from the high street banks.

SFCapital know the strengths of each bank and specialist provider and we are well positioned to match our clients to the most suitable offering. The Invoice Finance provider will make a monthly management charge and a finance charge for the service. SFCapital acts as a broker and will advise you on the most suitable route to take and on all aspects of the selection and implementation.

Asset Based Lending

Businesses are no longer tied to simple factoring and invoice discounting. ABL funders not only lend against invoices but allow a business to supplement this borrowing by lending against other assets such as plant and machinery, stock and property.

Invoice Finance Consulting

Utilising their long experience of working in the Invoice Finance and ABL sector, SFCapital is able to provide consulting services in all areas of this market.

SFC has assembled a team of industry professionals with a wealth experience. This ranges from new-start factors and discounters to major buy-outs. All of the areas of expertise can be covered, management, operations, audit, sales and marketing, systems and finance. Assignments can be short or long-term.

Purchase Finance

SFCapital has now extended the use of its supply chain payment solutions to allow a buyer to choose the credit period taken on any purchases irrespective of a suppliers payment terms.

Purchase Finance is a tool designed for businesses that want to either reduce their level of financial debt or improve their cash position. Utilising Purchase Finance will make a radical difference to working capital and key balance sheet metrics by providing total flexibility over the payment of goods and services.

For a larger corporation the use of Purchase Finance also provides the ultimate tool to align the goals of treasury with procurement. Using Purchase Finance means procurement can negotiate the best price from vendors by arranging payment when the supplier requires whilst treasury dictates the actual payment date. Costs incurred in extending payment terms will often be more than offset by lower purchasing prices achieved by procurement, typically through settlement discounts.

Purchase Finance is suitable for established, profitable companies with balance sheets worth a minimum of £1mn. Prospective clients will often be borrowing from a bank or invoice discounter and our facilities will complement these.

Supply Chain Finance

SFCapital has developed a unique end-to-end integrated supply chain financing solution designed for those organisations that require more than standard bank debt or receivables financing can typically provide. Through our Supply Chain Financing (SCF) service we can now provide finance that can equate to as much as 125% of your debtor book. You are no longer limited to 90% or less of your book debt as a funding limit.

SCF incorporates receivables financing as part of the solution but is supplemented by related financing of your purchases and, if needed, your suppliers. No additional security is normally required over and above a typical receivables financing requirement and the financing costs for SCF are comparable.

Property Finance

We have arranged finance in Europe and the UK for a variety of property projects – including €17 million for a €188 million Gross Development Value (GDV) project to develop 280 villas on a Spanish resort. We have also aranged the entire financing of a development in Antigua with a $110 million GDV.

We can organise bank debt of up to 70% of the required funds at competitive rates from major international banking organisations looking to expand their UK presence.

At present we are working on several opportunities in the Care Home sector.

Supplier Finance

SFCapital provides supply chain funding solutions to major corporations in the UK and Europe with the primary goals of generating profit and working capital for major buyers, as well as ensuring their supply chain is sufficiently funded.

SFCapital can arrange the finance as well as providing systems and an integrated programme that manages payments to suppliers.

Supplier Finance is able to provide well-run and profitable companies with what is effectively unsecured finance. This finance may be merely a useful balance sheet enhancement but in many cases can provide crucial working capital beyond current banking facilities which are fully utilised.

Other Funding Projects

We secured a £250 million facility in support of a UK based supply chain programme. We are currently securing funds of £10 million in support of a synthetic fuel venture.