Research undertaken by accountants BDO suggests that last year medium-sized companies grew faster, were more profitable and created more jobs than their large or small counterparts. However, that doesn’t mean that they’re at the front of the queue for accessing business finance. In fact, quite the opposite may be happening, as they are too large to benefit from Government initiatives aimed at small businesses and too small to capture the imagination of lenders.
In a recent survey of more than 500 medium-sized companies, more than a third said they had been rejected when attempting to find business finance. At the same time, almost a third said that obtaining approval had been arduous and had distracted their attention from running their business; one in five respondents stated that they had to work extra hours to make up the lost time. Most worryingly of all, one in five entrepreneurs said that they had struggled to pay their staff whilst waiting for the finance to be approved.
How Cashsolv can help with your business finance
However, where banks often overlook small and medium-sized companies, Cashsolv are specialists in SME finance. As an alternative lender, we have quite different acceptance criteria from banks – and a much less strenuous application process. In fact, if you apply for one of our emergency loans, we can have the application completed and the funds inside your account in under 24 hours.
For longer-term borrowing at a lower interest rate, you might wish to consider asset-based finance. As its name suggests, this form of business finance allows you to borrow against the value of your premises, plant or equipment. Since it’s a secured loan, we won’t need to ask for reams of paperwork – it’s not unknown for banks to request sight of your business plan, articles of incorporation, balance sheet, three years’ profit and loss statements and three years’ tax returns plus a sheaf of bank statements, among other documentation. We can also offer the loan at a very competitive cost, as our risk is significantly reduced.
Introducing invoice factoring and discounting
If you’re looking to tame a troublesome cash flow rather than borrow for a particular purpose, we can guarantee you’ll find invoice factoring and discounting a godsend. These forms of invoice finance allow you to borrow up to 85% of the value of your invoices the instant you issue them, with repayment being made when your customers pay you. But what’s the difference between them?
With factoring, we take control of your debtor ledger and assign experienced credit control professionals to secure early payment, thus minimising the interest you pay. This business finance solution is ideal if you’re struggling to chase payments and would prefer to focus your team’s time on servicing customers or generating new business.
With invoice discounting, you retain control of your own debtor ledger and secure payment yourself. This solution may be superior if you have a good accounts team and strong relationships with your customers, as it means that customers won’t find themselves dealing with a third party.
Cashsolv is waiting to solve your funding problems. To discover more about what we can do, please look at how to make business finance work for you.