Businesses must adapt, whether it is to a change in supplier, a change in customer demographics, a change in manufacturing process or indeed a change in staff, the need to be flexible and overcome challenges is essential. Often the one critical factor that can determine how successfully a business can adapt is working capital. Any adjustments will have an impact on cash flow and being able to fund the necessary changes can be demanding.
The most popular form of funding is a business loan. However, whereas in the past the call would be made to your local bank manager for help, this is no longer the case. With less and less businesses feeling comfortable in contacting their bank, businesses are instead approaching local independent finance companies who can assist with securing business loans.
The uses
A business loan can be used for a multitude of purposes:
- Purchase new equipment or machinery
- Build an extension or move to a larger facility
- Diversify into a new market
- Invest in new technology and business processes
- Purchasing a second business
The benefits
Utilising a business loan can allow a business to invest wherever they need, without having a negative impact on cash flow. It can be tailored to a specific need with monthly repayments customised to suit individual budgets. Also, there is often no requirement for an upfront fee or deposit which again helps with affordability. In essence a business loan is a cashflow friendly solution ideal for any type of business
The choices
When looking at a business loan make sure you explore all the options available. Don’t just settle for what looks like a good deal, do your research and carefully consider the choices. Also be mindful of any changes in your business that can happen over the next 6, 12 and 18 months as ultimately this could affect your funding needs and your repayment plans.
If you are looking for some help in understanding your business loan options, then our team are on hand to help. We have recently assisted a branding consultancy to secure £400K of funding to fulfil onboarding costs to enable the sign-up of new clients from around the globe. To find out more please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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