CVA Finance & Business Loan Options: Company Voluntary Arrangements

When a company enters a company voluntary arrangement (CVA), there are still CVA Finance options available. Lets explore them in this article.

If your company is in a CVA or about to enter one, you may be worried about being able to access business finance. This could be because your existing bank will not support the CVA or because you need access to additional funding for cashflow.

You may find that existing lenders are unwilling or unable to provide additional funding once in a CVA. However the business still needs to continue trading, buying stock, running vehicles and paying suppliers.

Thankfully, there are still funding options available and at Bolton Business Finance we can help you access them.

Can I Still Get Business Finance In a CVA?

Yes you can still access a range of different finance products from a number of specialist lenders. Depending on your companies individual circumstances, you may be able to apply for:

  • Business loans
  • Secured Loans & Bridging
  • Invoice Finance: Factoring & Discounting
  • Asset Finance & Refinance
  • Stock & Trade Finance
  • Merchant Cash Advances

You will need to work with a lender that specialises in distressed business lending and understands your circumstances.

As an independent commercial finance broker, Bolton Business Finance can help guide you through the process.

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What Types of Finance Can You Arrange When In A Company Voluntary Arrangements (CVA)?

What type of finance available to you in a CVA, will often be dictated by your available assets. In most cases when arranging finance in a CVA, you are going to need to provide some kind of security to the lender. This is because in general companies in a CVA are at a higher risk of collapse than a normal business.

However security for a lender can come in many different forms, some maybe less obvious than others. It could also be sufficient to refinance existing assets, releasing additional equity if available.

Lenders may request security such as:

  • Debtors & Unpaid Customer Invoices
  • Equipment & Machinery
  • Cars, Vans & Other Vehicles
  • Stock & Inventory
  • Commercial Property
  • Land
  • BTL Property
  • Director Personal Guarantees (PG)
  • Charge Against Main Residence

With that in mind, lets look at the different finance options in more detail.

If you would like to speak with one of our business finance experts, please contact us today.

Invoice Finance In a CVA

There are a number of specialist lenders that will still offer an Invoice Finance facility to a business in a Company Voluntary Arrangement. That is because they are taking security over any unpaid customer invoices.

Whether its to remove another bank or

There are different types of Invoice Finance to suit different businesses such as:

CVA Secured Business Loans

When in a CVA it is unlikely that you will accepted for an unsecured business loan. However if the business or its directors have any property, then this could potentially be used as security for a secured business loan.

Lenders will take any type of property into consideration for a secured loan, such as:

  • Commercial Premises
  • Land & Developments
  • Commercial Investment Properties
  • BTL Properties
  • Main Residence

The business would need to show affordability to make the monthly payments and the property could be repossessed if the loan falls into arrears.

Asset Finance & Refinance

If the company has any hard assets such as equipment and machinery, then this could be used to raise finance.

If assets already have finance, they could refinanced to release additional equity or reduce monthly payments. Provided there is sufficient equity in the asset versus the remining finance balance.

Stock Finance & Trade Finance With a CVA

If your business holds significant inventory already, this could be used to secure stock finance.

Also if you are looking to make a large stock purchase to fulfil a customer order, this can be funded by a specialist stock or trade finance lender.

Merchant Cash Advance CVA

A Merchant Cash Advance is a potential option if your business takes a large amount of its turnover via a debit/credit card machine or payment processor.

You could release a percentage of your future card sales from merchant service providers such as Elavon, Worldpay and Barclaycard.

This type of finance usually works best for retailers, hospitality and other B2C businesses.

Apply For CVA Finance Today

As an independent commercial finance brokers, we are experienced in supporting businesses access funding when in a CVA.

We can help to source specialist lenders, negotiate terms and guide you through the application process.

Why Use Us?

  • No Broker Fees On Business Finance
  • Fast Access To Funding
  • Speak With A CVA Funding Expert
  • Help & Support With Funding
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