Looking For Business Finance in 2019? Here’s what you need to know
During the festive break, people often mull over fresh starts for January, not only with their health and personal life, but with exciting new business opportunities. But to turn those ideas into reality, whether it be expanding into overseas markets, adding an expensive piece of machinery to your inventory, or launching a new brand from scratch, accessing finance will often be top of the agenda.
To kick-start that venture and boost your cash flow, you’ll need to have a detailed and robust business plan in place to help you sell your proposition to lenders – proving it’s both low risk, and profitable. As well as a traditional bank loan, there are alternative lending schemes available for consideration, depending on your needs.
How much should you borrow?
For any size of business, although it might seem obvious, it’s important to only accept finance if you’re certain you can repay it. Take the time to carefully read and understand the payment terms and don’t skip the small print, especially anything that refers to the amount of chargeable interest you’ll have to fork out, before you make any decisions.
Whether you opt for debt finance (from creditors, factoring, lease agreements, trade credit etc.) or equity finance (via venture capitalists, crowd-funding, investment angels), it’s advisable to ensure you have access to many different routes to finance. As you grow your business, your financial needs will naturally change, so the funding that was appropriate for your business back then, may not be the correct choice in the future.
Don’t put all your eggs in one basket
Try to treat your business finance with a mix and match strategy, so you’re not putting all your eggs in one basket. By using credit and equity in a well organised, but sensible way, you can keep your cash flow moving, which will help stabilise your business.
To win over the lenders and secure your sought after finance with the most competitive rates, it’s absolutely vital to check your business credit score on a regular basis. My Business Profile can help you stay on top of this as it allows you to perform frequent checks on your company’s financial health by giving you a clear view of your business credit score so that you can make well-informed decisions and adapt when necessary.
We’re here to help
Being refused credit shouldn’t be too much of a blow though. With the help and support from Experian, you’ll have access to key insights on your business’ health, so that you can understand exactly what’s affecting it and therefore make a wealth of improvements that’ll see you well into the New Year.
Take steps to improve your credit score and unlock opportunity with Experian’s My Business Profile.