21 Sep Pay4 Working Capital Finance: It Just Makes Sense
‘Pay4 Working Capital Finance’ is becoming the finance product of choice across the UK for growing medium-sized businesses. Pay4 has revolutionised the finance landscape, offering a simple, elegant and extremely flexible solution that works alongside both equity and debt finance. With so many benefits to incorporating it into your financial strategy, the question you should be asking yourself is: Can my business afford not to use Pay4? Here we look at the product benefits in detail and how they can transform the way you do business.
Your funding with Pay4 will be secured by trade insurance, so rather than being secured against your assets, it is based off the strength of your business, specifically the strength of your balance sheet. We’ll conduct a risk assessment based upon your business performance, and if you’re eligible, assign you a credit limit (from £50,000) based on that analysis.
This means the process of getting your funding is quick, simple and carries minimal risk from your perspective. You’ll get an initial indicative decision in less than five working days, and your funding can be available within two weeks after that.
Our simple-to-use online platform makes accessing your funding easy, and our dedicated account executives ensure everything runs smoothly and simply throughout.
‘Pay4 Working Capital Finance’ is designed specifically to be flexible and to finance growth. Your funding is accessed by settling your supplier invoices via an online platform. There are many benefits to having your funding provided this way, and flexibility is one of them.
For instance, because you use your credit to settle your own invoices, the working capital is available much earlier in the supply chain than most other forms of finance, particularly invoice finance. This flexibility allows businesses to utilise the cash and seize opportunities, even when customer orders are not coming in.
Also, you have access to working capital throughout the year, even if your business has seasonal, inconsistent or cyclical cash flows. And this fundamentally changes the way you can deal with many aspects of your business. This includes tendering for large contracts, buying new technology or a new website build, participation in an overseas trade delegation, equipment purchase, repairs and stock replenishment, to name just a few.
Flexibility will also flow throughout your supply chain. Since you’re paying your suppliers with credit, you can secure early payment discounts without depriving your business of its lifeblood: cash flow. Your suppliers will also be given a boost due to your prompt payment strategy.
Pay4 is flexible in terms of longevity too. Successful businesses can increase their credit limit with Pay4 as they grow, without cash or business assets taken as security. So without exposing themselves to greater risk.
You can use, repay, and reuse your ‘Pay4 Working Capital Finance’ as often as your cash flow cycle requires. In other words, this is not a short-term, one-off loan, it’s revolving. Provided your company accounts remain strong, you are free to keep using your credit line with us, for many years to come.
Revolving credit facilities are sometimes given a bad reputation. People think there will be minimum notice periods before advances are made, or limits on the amount that may be drawn at any one time. With Pay4, we don’t require a minimum notice period and we also don’t limit the amount you can draw down at any one time (within your agreed credit limit).
It Works Alongside Other Finance
Pay4 doesn’t take security over your business assets, and so your existing or future finance relationships are not compromised. This is a fundamental part of the Pay4 working capital finance solution. It’s designed to work both as a standalone finance product, and as part of a wider funding strategy. That’s why we call it a ‘complementary’ finance product.
And because we designed Pay4 to work alongside other forms of finance, it allows you the flexibility to spread your concentration risk across various forms of funding. This gives your business the best chance of developing a robust and sustainable working capital strategy.
The main reason why our product is so cost-effective is the way you are charged. The only fee you pay is a simple transaction fee that comes in to play only when the product is used. This revolving ‘pay-as-you-use’ model is simple, but clever.
Revolving credit facilities are sometimes criticised for having high commitment fees, but we don’t charge commitment fees at all. Furthermore, there are no punitive non-usage fees with our facility. Pay4 is simply ready to be used to fund opportunity as it arises. If you’re not using it, you’re not paying for it. It’s as simple as that.
There are also potential savings that using our finance product can create for your business. These can be savings such as cash buyer discounts from your suppliers. In some cases, you can actually offset the cost of using Pay4 by securing early payment discounts from suppliers.
If you think that this finance product could be invaluable to your business, and could help give your business a robust and sustainable working capital strategy, please contact us today.
Business Type Eligible For ‘Pay4 Working Capital Finance’
- UK based Limited Companies, LLPs or PLCs
- 3+ years trading history
- Turnover of £1.5m+
- Capital base £200k+
- Available to all sectors
- Revolving credit facility from £50k to £1m+
- A simple source of working capital with quick set up process
- Settle your supplier invoices and repay us 120 days later
- Pay in most currencies
- Backed by trade insurance
- Works alongside existing finance
- No lien/ownership of goods or invoice
- Simple and secure online platform
- Competitive transaction fees
- No setup costs, no administration costs and no non-utilisation fees