They say that “cash is king” and for businesses that should probably be more like “cashflow is king” and yet many small business owners leave it until the cashflow dries up before they start talking to banks or looking for finance..
What they should be doing is looking forward and making sure that the projected business cashflow is strong.
By looking forward you might see periods where cashflow is likely to be weak, or opportunities that might use all the cash you have and therefore leave you without cash to operate the business with.
The real key to arranging business finance is to get in early when your cashflow still looks good.
We Can Arrange Small Business Loans
The key to arranging finance for a business is to get in early .. before the cashflow dries up.
There are a variety of ways to arrange finance for a business, and reasons why a business may need finance too.
When you operate a business you will know that cashflow can come under pressure at times. In some businesses there are seasons that are better or worse than others, there can be pressure on cashflow as you make changes within the business and there can be unexpected things that can impact cashflow.
One of the loans that we will often arrange for a small business is a revolving credit facility. We have access to an option that does not need to be secured on your home, and costs nothing unless you use the money in which case you just pay interest for the period that you use the money for. These are great for helping to manage business cashflow and to help fund business growth or purchases as the loan can be paid off at a pace that suits cashflow.
There are also short-term lending options which are ideal for businesses that are restructuring or expanding but we will often use these to help cover a cashflow shortfall or tax debt. Even if the IRD allow you to enter into an arrangement for tax debt, with that arrangement you will be paying a high interest rate (which we expect may increase soon) and will be hit with penalties if you miss even one payment. Having a loan that you have arranged will often give you a bit more time, but will be more flexible should you want to pay off earlier or need more time.
You can also use property to secure a business loan – it can be cheaper to do this, but it’s not always recommended to link your home and business with the bank.
Get Your Business Cashflow Sorted Out Now!
It really does make sense to get your business finance approved in advance and it removes the risk of being rushed into taking our more expensive finance.
We can provide you the range of options, and arrange the finance to suit.
