There are a wide variety of business finance options available which can be used for a variety of reasons.
Whether you need to start or grow a business, purchase new equipment stock or premises or you simply need a little extra cash to help with your day to day running costs. No matter what the reason and circumstance there will be the perfect business finance solution for you.
Getting the right business finance products
As the market place is full of such products it can be daunting working out the advantages and disadvantage of each option and working out what is the best option for you and your business. That’s why before committing to a product you should get some advice from the professionals, to make sure you make the right decision not just for your current needs but for your future needs too.
Here are some common business finance options:
There is a huge range of business loans available and the cost and flexibility of each product will vary. Business loans are perfect for larger and longer borrowing needs, requiring you to repay what you have borrowed over a pre-agreed time frame at a fixed, variable or capped interest rate.
Business credit cards
Business Credit Cards are a quick and flexible way to finance smaller items of business expenditure, they can also help you to improve your cash flow as you can make payments monthly.
Factoring can improve your cash flow which can help you grow your business by releasing up to 95% of the cash that is held in your unpaid invoices. You can often receive your money with 24 hours of your raising the invoices. Factoring is most suitable to businesses with a projected turnover of 50K who do business with other businesses. The factoring company will manage your sales ledger, payment collection process and look after your credit control which will free up more of your time to develop and grow your business.
Discounting is similar to factoring, as it also releases the cash that is tied up in your unpaid invoices, often within 24 hours. However the difference with this option is that you collect the payments yourself.As resources are required to collect the payments this option is more suited to larger businesses, who have the time and resources to manage the sales ledger, collection process and credit control.