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New business finance co alternative to factoring

News release
28 June 2006

New business finance company offers alternative to factoring

Edward McKee Wright has been appointed to run Capital+Merchant Business Finance Ltd, a newly established provider of working capital funding. Mr McKee Wright has extensive experience in the factoring and the trade finance sector. He was involved in the introduction of factoring to this country in the mid 1990s, with Scottish Pacific. He then set up factoring companies for SH Lock, and Orix.

In his new role, Mr McKee Wright will introduce a range of business finance products, targeted at businesses with turnover from $150,000 to $10 million. The products include trade finance (lending against pre-sold orders), invoice finance and factoring, all of which allow a business to turn future profits into cash they can use today. The company will also provide business loans that do not require a property asset security.

Capital+Merchant Business Finance is meeting a need for alternative forms of working capital funding to those offered by banks and traditional factoring companies. The company's philosophy is to contribute fully to a business' growth. This is an objective banks often are not able to meet, says Mr McKee Wright, based on his experience working with businesses in their growth phases.

"Traditional sources of finance can sometimes hold a business' growth back. A bank may withdraw lines of funding at critical times, causing a business to fall over. They are not able to look beyond a balancesheet checklist, to assess the intrinsic value of the company. You might have the ability to make great profits, have lots of new business coming in, but because you fail to meet equity ratios or fit into a box of some sort, a bank will not support you."

Equally, Mr McKee Wright says there is a stigma associated with established companies offering factoring, of charging high fees and exercising excessive control. "We want to help businesses move forward, not hold them back. That means having faith in their business plans, and being upfront about the fees for our service."


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