Business finance is diverse, it can be used to help fund the purchase of an asset, to fulfil growth plans, to release working capital, to free up money from unpaid invoices, to complete on a property development deal or to simply boost cashflow.
Previously businesses would have not considered business finance as they would have been concerned with the amount of work required to just simply complete an application. However, this is certainly no longer the case and by following 5 key steps, positive results are typically achieved:
- Maintain a positive cash flow within the business as this will demonstrate financial stability along with offering security that debts can be repaid.
- Compile an accurate 3-year forecast which sets out the performance plans for the business along with predicted revenues.
- Be clear from the start as to what funding is required but don’t try to pigeonhole the business down one specific route as alternatives could be more advantageous.
- Keep a good business credit score as this again demonstrates credibility, a poor credit score could cause issues, if this is the case then delay the application until it can be improved.
- Develop a detailed and accurate business plan which demonstrates good market knowledges and the right infrastructure to achieve growth plans.
When the business planning process has been finalised the next question that gets asked is, “I simply want business finance, but where do I apply?”. This is where a finance broker is so beneficial as they can translate your needs, research the best options and present an application to the most suitable lenders.
A broker will explore all forms of business finance with the most common being:
- Business asset finance
- Business loans
- Commercial mortgages
- Invoice finance
- Property development finance
- Acquisition finance
The advantage of using a broker is that they will simplify the process of applying for business finance, with the aim of ensuring expectations are always maximised. Borrowing money no longer needs to be the daunting process it used to be, working with a broker a business can move forward and achieve all their specific business goals.
If you have any questions around any form of business finance, then the NGI team are on hand to help. For more information, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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