azset finance
Free Your Business
welcome
Welcome to Azset Finance, is the trading name of Azure Asset Management Services Ltd, your business financing specialists. We are a highly skilled commercial finance brokerage with access to a multitude of differing financing options for your business. Whether you are large multi-million pound concern or a relatively young start up, we are here to find you the best financing deals to help your business grow and thrive. Don't be held back by cash flow issues. Free the value locked in your business to reach new heights.
At Azset Finance, we work hard for our clients to acquire the most cost-effective finance terms for their businesses to flourish. Our clients return to us because of our integrity, diligence, high quality service standards and our ability to deliver the finance your business requires.
financing options explained
In this competitive and connected world, there are so many innovative ways in which you can finance your business. We have solutions for Limited Companies and Sole Traders. To be able to understand your needs better, we need some information from you and a little of your time. Please fill out our form below or contact us by phone or WhatsApp.
In the meantime, let us explain the various types of funding available
unsecured business lending
invoice finance
are straight-forward ‘cash’ loans with repayments made over the agreement period, the overall cost tends to be higher but are generally a faster access to working capital. Generally faster to obtain, with lower upfront costs, Unsecured Loans are becoming a much more viable option for businesses, especially for those with less tangible assets.
is where you use your companies’ outstanding debtor invoices to release cash. This falls into a number of sub categories. Invoice finance is when the lender uses a company’s unpaid invoice still within the terms of credit as security for funding, providing you quick access to a percentage of the invoice's value within 24/48 hours. The portion of money a lender will prepay you is based on its own risk criteria. The goods or services may have to be signed off by a professional before the invoice payment is agreed by the buyer. Invoice finance lending is for B2B, (business to business transactions). There are several types of this finance, here are to most common.
invoice discounting
is generally suitable for businesses with established sales processing systems who wish to use their own credit control processes; It’s therefore confidential and customers are never informed of the Invoice Finance Company (IFC)’s credit controllers’ involvement. Normally the lender requires to fund all your invoices/sales ledger for an agreed period of time; Six months plus.
In invoice discounting, the business submits its unpaid invoices to the lender, who advances a percentage of the invoice value, typically around 80-90%. Once the customer pays the invoice, the lender releases the remaining balance, minus a fee. This method is ideal for businesses that want to maintain their credit control processes while also improving cash flow. It’s also a flexible option since the amount of funding grows in line with the business’s sales.
invoice factoring
is when all elements of credit control function is managed by the IFC, their credit controllers will directly contact customers to ensure that prompt payments are received, including statements, collection letters and – if required – legal actions received, these services can be combined with bad debt protection, unpaid invoices are then protected. Normally the lender requires to fund all your invoices/sales ledger for an agreed period of time; six months plus.
This service not only improves cash flow but also relieves businesses of the burden of chasing payments, giving them the freedom to focus on core operations. Invoice factoring is particularly useful for small and medium-sized enterprises (SMEs) that may struggle to secure traditional financing or need to manage their working capital more effectively. It also provides a layer of protection against bad debts, as factors typically conduct credit checks on customers and may assume some of the risks associated with non-payment.
confidential factoring
selective invoice finance
is similar to invoice factoring, but the customer invoiced does not know of the IFC’s credit controllers’ involvement, all the elements of back-office administration is supplied by the IFC. Bad debt protection can still be secured.
Confidential factoring is ideal for businesses that are concerned about the potential negative perception associated with traditional factoring. This service is particularly popular among businesses that want to maintain control over their customer relationships and credit management but require the cash flow support that factoring provides.
is also known as spot factoring or single invoice finance, enables businesses to release funds against one or multiple invoices. Unlike factoring or discounting, selective invoice finance does not require you to sell your whole sales ledger and be tied into a six months plus contract.
Selective invoice finance is particularly attractive to businesses that want to retain control over their financing and avoid long-term commitments. It offers the freedom to access funding only when it’s needed, without being tied to an ongoing factoring arrangement. This could be a cost-effective solution for businesses with strong credit management processes and low bad debt risk, as they can finance only their most significant or most delayed invoices.
construction invoice finance
revolving credit facility
is the solution to long delays with payment in the construction industry. The hierarchy of contractors and sub-contractors in the construction industry often means long delays in payment for those at the bottom. Construction factoring addresses this issue and helps with a single, independent contractor near the bottom of the payment chain, or a small company in the middle.
The funds advanced on invoices for work completed enable companies to tender, with confidence on future work, competing with larger companies on an equal basis. You can order materials and hire extra staff in the knowledge that the money is available. There’s no chasing payment as this task is taken on by the factor.
All invoices are covered, whether for works undertaken as part of a contract, a construction agreement or purchase order, staged invoices as well as sales invoices.
is a type of credit that does not have a fixed number of payments, in contrast to fixed term loans. An example of this for members of the public is a credit card. A commercial revolving credit facility is typically used to provide cash-flow for day-to-day operations.
Borrow, repay and borrower again a % of your last annual turnover without needing to reapply each time for business finance. Enables fast payment with up to 120 days to repay. Some lenders charge a 0% interest and a one-time fee for each payment, others charge a small monthly fee for the facility and a % per month for funds in use, 1.2% to 1.99% per month.
merchant cash advance
secured business loans
is a hassle-free funding solution with a business cash advance, also known as a merchant cash advance. Utilize your card machine instead of business assets to secure quick cash. Repayments are based on a percentage of monthly card transactions, providing flexibility during slow periods.
require some type of collateral as a condition of borrowing. A lender requires collateral to serve as security, which lowers the risk of non-repayment and therefore the borrower can access to lower interest rates or access to the lending market, if the borrower has a poor track record of loan repayment.
The probability of the lender receiving their funds back are greatly increased, by taking a legal charge of interest over a specific form of collateral; physical, tangible assets, such as property and vehicles, or liquid assets, such as cash. In this instance, we are focusing on bricks and mortar properties. Investment properties, which are let out residentially to commercially.
asset finance
stock / inventory finance
is a flexible financing solution that allows businesses to acquire or lease essential equipment, machinery, and vehicles without the need for large upfront payment. This spreads the cost of the asset over a period of time, making it easier for businesses to manage their cash flow while having the tools they need to operate and grow. Whether you are looking to purchase new equipment, upgrade existing assets, or release the value tied up in owned assets through sale and leaseback arrangements, asset finance provides a cost-effective and efficient way to meet your business needs. For businesses in various industries asset finance offers a tailored approach to acquiring necessary resources. It not only preserves working capital but also offers potential tax benefits, because the payments are often deductible as business expenses. Asset finance agreements can also be structured to align with the cash flow patterns of your business, providing flexibility and helping to reduce financial strain.
Secured funding to acquire hard and soft assets, the lists below are not exhaustive but are examples of what can be financed to retain working capital in the bank.
Stock and investment finance is a specialized funding solution that allows businesses to leverage their inventory or investment portfolios to access working capital. This type of finance is particularly valuable for businesses that hold significant amounts of stock or investments, as it enables them to unlock the value of these assets without needing to liquidate them. By using stock or investments as collateral, businesses can secure flexible financing to support operations, invest in growth opportunities, or manage seasonal fluctuations in cash flow. This approach helps maintain operational stability while making the most of existing assets.
venture capital / start ups / equity finance
management buy ins / management buy outs / employee ownership trusts
Venture capital (VC) is generally used to support startups and other businesses with potential for substantial and rapid growth. VC firms raise money from limited partners (LPs) to invest in promising startups or even larger venture funds.
For example, when investing in a startup, VC funding is provided in exchange for equity in the company, (equity financing) and it is not expected to be paid back on a planned schedule in the conventional sense like a loan. VC investors typically take a longer-term view and hope they will see outsized returns should the company be purchased or list on the Stock Market. VC’s usually take only a minority stake, 50% or less — when investing in companies, also known as portfolio companies, because they become part of the firm’s portfolio of investments.
Rather than funding a company via debt, which is tax deductible, acquiring working capital by selling shares in the company, there is no obligation to repay the funds injected, however the investor usually has a say in all business decisions, there is no obligation for the investor to sell their shares back and if the company experiences financial prosperity, to buy the equity back will cost more than the initial amount invested in to the company. The company also pay tax on the dividends paid to the VC.
A Management Buy In involves the purchase from a company’s ownership by external investors, a Management Buy Out is where a company's existing management purchases the company. MBO’s usually require financial resources beyond those of management and can be raised with banks and lenders.
An Employee Ownership Trust is a trust that enables a company to become owned by its employees and can be set up by a company’s existing owners, perhaps as part of their exit or succession planning strategy, or by founders starting a new business which they wish to be employee-owned.
information
Azure Asset Management Services Ltd
(T/A Azset Finance)
Company No:15147176
ICO: ZB604674
get to know us
Azure Asset Management Services Ltd is an Independent Commercial Finance Brokerage not a lender. We are not Independent Financial Advisors and so are unable to provide you with independent financial advice. We are not regulated by the Financial Conduct Authority. Azure Asset Management Services Ltd
Azure Asset Management Services Ltd may receive payment(s) or other benefit from the finance provider if you decide to enter into an agreement with them.