What do you need finance for?
Before you start to decide on finance products and options, it’s a great idea to pin down exactly why you need finance and what type of business you are. This helps you to create clear objectives that can help paint a clear picture to lenders about why finance for your business makes sense.
Why do you need the finance and what are you looking to fund? There are so many different reasons a business needs finance, and there’s often a different product for every single one. But most of them fall into these general areas.
You want to expand. It’s not all about bigger premises, a new property or a revamp, it can be for new equipment or staff, maybe a marketing campaign to drive more sales, or diversifying your offering.
Putting stock on the floor. If you’re about to have a busy period, you need enough inventory, so you’ll need to buy it before you can sell it and generate the income. The right finance will ensure you’re ready.
Keeping up cash flow. It’s more than simply a cash injection, you might get finance for equipment or inventory to preserve the funds you already have in the bank. You can even get finance based on the invoices you’ve already sent to clients.
Brand new equipment. Equipment or vehicle loans can help preserve cash flow while also helping to generate new income with a new asset. There are also possible tax benefits, and lenders often consider the asset as the collateral, so you don’t need to secure it against any personal property.
Time to refinance. Your business and its needs change, and so do the finance products the lenders are offering. So it can never hurt to consider finding a more suitable loan, or a better deal.