had it not been for Platinum's unique operating model Inside Right would have been unable to find the necessary funding required despite the business being well placed to take advantage of any upturn in the market.
(PRWEB) February 4, 2009
Platinum Funding UK Limited, a premier factoring company, announces the completion of a £13.5 million accounts receivable financing facility to Inside Right Limited a phoenix company recently out of administration. Platinum Funding UK Limited is an affiliate of the US-based Platinum Funding Group, which also provides invoice financing services to companies in various sectors across the United States.
Inside Right is a 19-year old interior design company based out of Newcastle. Approximately three quarters of its business is concentrated in carpet installations, particularly focused on the new homebuilding market. The sharp downturn experienced in 2008 within the property and construction markets in the UK significantly affected Inside Right's operations, requiring the business to undertake a restructuring initiative and refinance with Platinum's innovative approach.
Inside Right was previously funded by an independent factoring company that was hesitant to support the phoenix company due to the market risks currently experienced by the housing sector. Platinum was able to accommodate Inside Right's major concentration with a large PLC developer and its creative funding approach was a perfect working capital solution for the recovering business.
Mike Pagett, Chairman and Finance Director of Inside Right, commented that "had it not been for Platinum's unique operating model Inside Right would have been unable to find the necessary funding required despite the business being well placed to take advantage of any upturn in the market." He added that although several UK and USA lenders had understood the strengths of his business, none could overcome their uncertainty in relation to the construction sector sufficiently to agree to advance funds.
"Platinum Funding leveraged Inside Right's very strong audit trail to provide vital restructuring and growth financing to a firm disadvantaged by the current housing and credit markets," remarked Eyal Levy, Chairman and CEO of Platinum Funding Group. "Platinum's flexible operating model enabled us to approach the situation differently, and capitalise on an opportunity at a time when most asset-based lenders would only see risk."The credit crunch is on. Lenders have stopped lending. Credit has become extremely tough, almost impossible, to obtain. And the general feeling among banks and traditional lenders can be boiled down to one word: Fear. Lenders fear that they will book big losses on future loans because they're taking such a beating on existing ones. This fear is making them reluctant to lend--and small to medium-sized businesses are feeling the brunt. Forget about expansion; without working capital, businesses are struggling just to remain solvent. But there are exceptions. Platinum Funding US and UK are poised to partner with businesses to help them meet, and exceed, their strategic goals.
Platinum Funding UK Commands Momentum, Reverses Fortunes in Spiraling Economy
The credit crunch is on. Lenders have stopped lending. Credit has become extremely tough, almost impossible, to obtain. And the general feeling among banks and traditional lenders can be boiled down to one word: Fear. Lenders fear that they will book big losses on future loans because they're taking such a beating on existing ones. This fear is making them reluctant to lend--and small to medium-sized businesses are feeling the brunt. Forget about expansion; without working capital, businesses are struggling just to remain solvent. But there are exceptions. Platinum Funding US and UK are poised to partner with businesses to help them meet, and exceed, their strategic goals.
US and UK Lending Mimic Similar Dismal Pictures
Citing an analysis of banks that recently announced their quarterly results, the Wall Street Journal said that lending at many of the largest US banks fell in recent months. In fact, ten of the 13 big beneficiaries of the U.S. Treasury Department's Troubled Asset Relief Program saw their outstanding loan balances decline by a total of close to $46 billion between the third and fourth quarters of 2008; that's an alarming 1.4 percent decrease. Not surprisingly, those banks have collected a majority of the roughly $200 billion the government has doled out since TARP was launched last October to assist in stabilizing banks and other financial institutions. For example, both Bank of America Corp. and Citigroup, Inc. each accepted $45 billion from the government. The overall loans on the 13 banks' books declined from about $3.36 trillion as of Sept 30 to $3.31 trillion at year's end.
In the UK, business groups have questioned the latest Government measures to persuade banks to lend to small firms struggling in the economic downturn. Despite previous attempts to kick-start lending, thousands of businesses are still failing to access financing. The Enterprise Finance Guarantee Scheme, or EFGS, replaces the Small Firms Loan Guarantee (SFLG) scheme, which charged two percent. But business groups are asking why the new schemes should prove more successful, given the reluctance of banks to lend through its predecessor. According to figures from the British Bankers' Association, the value of SFLG loans fell from £422million in 2006 to £207million in 2008.
In both instances, the combination of timid traditional lenders and poorly-structured alternative lenders provides little hope for businesses looking to expand or remain solvent. And the outlook for 2009 doesn't look much more promising. In fact, the
Forum of Private Business believes 2009 is likely to be even more challenging for small businesses than 2008. The FPB estimates as many as 200,000 businesses are facing closure--businesses that will never return should they go under.
Platinum Funding: Showing Financial Strength on Two Continents
While alternative lenders are receiving more attention around the world as viable options for financing, few, if any, can boast the track record that Platinum Funding is quietly building. Here are just a few of the highlights from 2008 and the early part of the New Year that point to Platinum Funding's strength and diversity:
- Wireless Communications. On June 17, 2008, Platinum Funding Group provides $66 Million Factoring Facility to Velocita Wireless to support acquisition of SkyTel from Bell Industries, Inc. The accounts receivable factoring facility assisted the combined entity to consolidate its position as one of the leading M2M providers in the USA.
- Electrical Subcontracting. Platinum Funding Group signed a $12 million accounts receivable factoring agreement with Compsec Electric Corporation ("Compsec") on July 29, 2008. Compsec is a Long Island City, NY-based licensed electrical subcontractor that has been in business since 1999 and works primarily on the new construction projects.
- High-tech and IT. Platinum Funding Group energized the software market via a $13 million cross-Atlantic funding agreement with PrismTech Corporation ("PrismTech") on October 22, 2008. Platinum provided a $9 million factoring facility for PrismTech's US operations in Burlington, Massachusetts, US and $4 million for the Gateshead, UK branch.
- Interior Design. On January 20, 2009, Platinum Funding UK Limited initialed a £13.5 million accounts receivable financing facility to Inside Right Limited, a 19-year old interior design company based out of Newcastle. Platinum was able to accommodate Inside Right's major concentration with a large PLC developer and its creative funding approach was a perfect working capital solution.
The Platinum Funding Edge: A Unique Fusion of Management and Resources
Personal and individualized attention to every client's unique cash flow needs. Tight monitoring and administration of efficient accounts receivable turnover. Platinum Funding has struck a distinctive balance of management and resources that few traditional and alternative financing options can imitate. Platinum Funding Group boasts proven financial strength, personalized and customizable service, and an over 15-year track record of success across multiple industries. With an emphasis on creativity, Platinum Funding can establish a flexible and tailor-made financing solution to meet virtually every need, allowing businesses to concentrate on exploring new revenue streams and market footholds. The result is a small to mid-sized business that is capable of weathering the storm and prepared to capitalize on growth opportunities.
Platinum Funding offers a full menu of financial products and factoring services to its clients that include accounts receivable factoring, accounts receivable management, Tri-Party Agreements, purchase order financing, debtor-in-possession financing, government receivables funding, bridge funding, acquisition funding, and much more. What's more, working capital is just the tip of the iceberg. Platinum Funding specializes in several unique business situations, such as:
- Taking advantage of volume discounts and early payment discounts
- Purchasing additional inventory through the increase in working capital afford by invoice factoring
- Reducing bad debt and improving credit rating
- Outsourcing accounts receivable management, which includes credit checking and collections
- Increasing advertising and marketing efforts
- Financing seasonal needs or securing larger orders through the financial security that comes along with invoice factoring
- Offering extended credit terms to its clients
- Keeping fixed assets unencumbered
- Retaining equity and ownership, as invoice factoring leaves the balance sheet unchanged
- Meeting increased sales demands without having to worry about restrictions of conventional lines of credit
Platinum Funding Chairman and CEO Eyal Levy: A True Factoring Expert
Clients that partner with Platinum Funding quickly discover that the man behind the curtain is one of the most knowledgeable factoring experts worldwide. Since 1992, Mr. Eyal Levy has fused his matchless knowledge of factoring products and processes to build a dynamic team of professionals dedicated to putting your business in the best possible position for success. Mr. Levy's financial creativity and penchant for best-practices has earned him much-deserved praise in the industry. And as he guides Platinum Funding Group into a new economic era, he is continuing to find progressive ways to get budding start-ups and established businesses the financing they need to capitalize on opportunities in their respective fields. There's simply no one more knowledgeable about the factoring process anywhere in the world.
By; SEO Factor