The Garage 295

focus Finance
36
business
and finance
The Garage Magazine has spoken with Lee Schofield, director
of PMD Business Finance, to understand what options are
available to garages, and how easy it is to seek advice and
support when considering your options.
Financing an expansion
or buying new
equipment for your
business can take
many forms. You can
use your own money, borrow
from family and friends, and
use funds that have been
generated internally. You can
also look to obtain financing
through banks or through
equity investors, if there
are shareholders within the
framework.
The Garage Magazine has
spoken with Lee Schofield,
director of PMD Business
Finance, to understand what
options are available to garages,
and how easy it is
to seek advice and support
when considering your options.
Lee says “At some point
most businesses will probably
need access to capital
or some kind of financing
option, unless they have
the balance sheet of Apple.
Even large companies who
are well known to us will
routinely ask for capital infusions
to meet short-term
obligations. For a small
business, finding the right
lending partner and funding
model is extremely important.
“To enter into an agreement
for any finance product,
you must be fully aware
of the parameters and the
obligations you are committing
to. Failure to meet these
obligations can have catastrophic
results”.
Lee explained two areas
where garages can benefit
from products helping cash
flow.
The first product is invoice
financing. Lee explained that
this is an excellent way to release
funds that are tied up
in outstanding invoices.
Q: What is Involve Financing?
A: Invoice Finance gives
you the ability to release
money against your unpaid
invoices. Invoice Finance
companies will release up
to 90 percent of what you
are owed within 24 hours
of your invoice being raised.
Invoice Finance is like an
overdraft that isn’t capped.
Q: How can Invoice Financing
help your business?
A: If you are waiting 30,
60 or 90 days for your customers
to pay you then Invoice
Finance can release
funds against those unpaid
invoices. It bridges the gap
between you raising your
invoice and getting paid by
your customer and gives you
the ability to fund the next
order or job.
It is the ideal tool to help
fund growth.
Q: How can Invoice Financing
help with Cash Flow?
A: Invoice Finance can
help you fund increasing
orders or help maintain
a healthy level of stock so
you are able to respond efficiently
and effectively to a
customer’s demands.
At PMD we see many business
get into trouble, not
because they don’t make
a profit, but because cash
becomes tight due to sales
growing but customers taking
longer and longer to pay.
PMD Business Finance
deals with more than 20 different
funders so we can ensure
that each of our clients
finds the right funder for
their business.
The Garage asked Lee to
explain the second option,
Asset Finance. PMD has access
to an extensive funding
panel which means they can
offer tailor-made solutions
to suit your business’ needs.
Asset Finance
Q: Can you explain how asset
finance works?
A: Asset finance allows your
business to purchase the
equipment it needs to move
forward, while spreading
payments over a fixed period.
Terms range from one
to five years and in most
instances no deposit is required,
ensuring cash flow
isn’t disrupted.
Q: How does a garage benefit
from an asset finance agreement?
A: Your business benefits by
being able to stay at the forefront
of vehicle repair technology.
Businesses need to
future-proof themselves and
ensure they have the latest
equipment – finance makes
good quality equipment affordable!
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