When you’re a small business looking to grow, investment is essential. But how do you secure that vital investment that will take your business plans forward? Startup finance is perhaps one of the trickiest areas that new enterprises have to tackle and the main sources of capital tend to fall into two camps: cash reserves or a director’s loan, or business finance.
The case for taking money out of the business
Most start-ups will find that their cash flow or reserves are not yet healthy enough to extract money for further investment purposes. Doing so will naturally reduce available income for the business owners and dipping into buffer reserves will expose the business to risk by removing the necessary financial safety net that provides a hedge against cash flow difficulties or unexpected bills.
Another option, depending on the type of business structure, is to make a personal director’s loan to the business, but again – you are essentially dipping into your own pocket to fund a business plan, and immediately putting yourself at a personal loss in order to fund growth.
The case for accessing business finance
Business Finance tends to be the preferred option for enterprises seeking to grow and there are various specialist providers like us that exist purely to fund businesses. This means that it is possible to access generous borrowing terms rapidly and to have the cash in your business bank account in just 24 hours.
These startup finance packages are cost-effective and have affordable interest rates that are fixed to help with planning and budgeting. What’s more, by accessing specialist business finance, you can keep your cash reserves in place to maintain a healthy risk profile and financial buffer, retain your own personal assets and also access the help and support of a specialist finance team with specific expertise in the field.
Our approach is quick, convenient and designed to meet the unique needs of startups and small businesses.
To find out more, contact Nationwide Corporate Finance today. We have lent over £3 billion in business finance to firms of all sizes within the past 30 years, making us one of the most trusted specialist providers of business financing operating on the market today.