In 2015, an estimated 50,000 new businesses set up shop in the UK each month. Most of them will have required some form of business finance – whether a direct injection of capital from the founders, backing from a business angel or a loan from a bank or alternative lender like Cashsolv. But just what can a business loan do to power business growth for a new or established company?
1 It can buy you premises
Some businesses can operate from just about anywhere. Those that are customer facing or require specialist manufacturing facilities cannot. First impressions count, and if your customers’ first impression is of an amateurish, small-time operation you’re far less likely to succeed and achieve business growth.
2 It can buy you the best people
Any business is only as good as its people – and the best people are very expensive. You may find yourself facing the choice of waiting for revenues to grow until you can afford top-class talent – or borrowing to attract the talent that will make your business grow.
3 It can buy you new equipment
Depending on what you do, you may be able to operate with just a couple of laptops and a basic phone system. But if your business involves manufacturing, you may need to purchase very expensive – and very specialised – equipment to make a quality product. A business loan could mean the difference between buying the best and settling for second-best.
4 It can pay to advertise
You may have a better product or service than your competitors, but if you don’t market your business nobody will be beating a path to your door. Take out a business loan and you can launch a marketing campaign that will introduce your name to your target audience and give you real impact in the wider world.
5 It can enable you to cope with business growth
Borrowing when you’re already experiencing business growth can sound paradoxical – why would a hugely successful business need to borrow? However, when you take on a major new contract you may need to invest in new people, plant or stock before you get paid, putting significant stress on your cash flow.
6 It can allow you to charge more
If you’ve got the best people, the best equipment and prestigious premises, the value of your products and services increases significantly. Whatever your business sector, customers will pay for quality, so a business loan can pay dividends.
7 It can empower you to take risks
If you have nothing to fall back on and a marginal cash flow, your business growth strategy will have to be conservative. With loan finance on hand – even if you don’t need it right now – you can take a few calculated risks without risking disaster.
When you need to borrow, you need to talk to Cashsolv. If you require an emergency business loan to smooth over a cash flow crisis, we can have the funds inside your account in under 24 hours. For longer-term borrowing, asset-based finance allows you to borrow against the value of your plant, premises and equipment.
Finally, for ultimate flexibility you should consider invoice factoring or discounting. These innovative solutions enable you to borrow up to 85% of the value of your invoices as soon as you issue them, with repayment being made when your customers pay you. With invoice discounting, you keep control of your own debtor ledger, whilst with factoring we assign our own experienced credit control professionals to secure early payment, thus minimising your interest charges.
To learn how Cashsolv can give your business finance for growth, please visit our business finance solutions page.