Business finance can be a minefield. With a myriad of solutions from a broad spectrum of suppliers, it can be hard to know where to begin.
Still jittery after the 2008 financial crisis, banks have tightened their lending criteria considerably, closing off the avenue of business finance for all but the most asset-rich businesses, and a historically low base rate is not always reflected in headline interest rates.
With this in mind, we’d like to offer a few pointers towards more innovative, cost-effective and tailored business finance solutions.
The first question to address is why you need the finance. Is it to cover the shortfall from slow-paying customers or to smooth over a cash flow dip? Alternatively, are you seeking to refinance existing debt or power growth?
Or perhaps you need finance in the form of quick cash to purchase increased stock or new vehicles or equipment to service an unexpectedly large order?
Where the shortfall is temporary rather than structural, and where instant access is the most important criterion, a traditional bank overdraft is clearly an option.
However, this type of business finance is generally more risky for the lender and hence rates and arrangement fees may not be competitive in addition to an unwillingness to add this facility in many cases.
Where banks are cautious to tread, enter Cashsolv. Our business is geared to supporting yours with short-term business finance, whether through emergency business loans (from £20,000 to £250,000) or asset-based finance secured on your existing plant and equipment.
Emergency loans are directly financed by ourselves, cutting out the middleman and allowing us to offer the keenest rates and most advantageous terms.
For asset-based business finance, we use a panel of lenders for maximum flexibility – meaning that if one is reluctant to lend in your business sector or is simply too costly, we can easily arrange lending from another.
Of course, loans may not be the appropriate lending solution for every business, so we also offer invoice finance.
Invoice factoring is targeted purely at business-to-business companies and can provide business finance in the form of a loan on up to 85% of the outstanding invoice value. Put simply, as soon as you issue the invoice, we’ll lend against it providing your much needed cash flow, whilst also taking control of your debtor ledger to ensure rapid repayment.
With invoice discounting, you still get the instant finance but keep control of your own ledger and deal with your own debtor management. This solution is clearly cheaper as it means less work for us, and it also means that late-paying clients are contacted by yourselves rather than a third party, so it’s a more advantageous form of business finance for many organisations.
On the downside, your credit control procedures may not be as rigorous as ours, and of course you’ll need to employ people to follow-up your debts.
Cashsolv can provide the business finance that your bank can’t, and it’s easy to arrange a tailored finance package. In the first instance, we invite you to contact us for a free, impartial and confidential consultation without any obligation.
We’ll take the time and trouble to gain a thorough understanding of your business needs before making clear and considered recommendations, and we guarantee you’ll find the whole process stress and jargon-free.
As soon as we’ve reviewed the information you provide, we’ll give you an immediate in-principle decision on the finance option that is best for you – and if you opt for an emergency loan, the cash can be in your account inside 24 hours.
Asset-based funding typically takes two to three weeks to arrange, though we can act faster in a business finance emergency, and with invoice financing it’ll be three-to-four weeks before you have the funds in your hands.
We’re here to make finance work for your business. To make sure you take the right steps through the business lending minefield, please contact us now or use our online application form.
Schedule a quick and confidential, no obligation call with one of our experts to see how our solutions could help your business.
For further information Download our Guidance Paper on 'How short term business loans can help your business finance problems', or view the following relevant pages: