As any small business owner will tell you, business health is never assured. One month you can be flying, the next counting your petty cash to make ends meet.
Fact is, even if you have a pretty good handle of your finances, something can always come up that’ll put you on yellow alert. An unpaid customer invoice, an unforeseen expense, a higher tax bill than you expected – you know the kind of stuff; the nuts and bolts of running a business that can always come up a cropper.
Being aware of these issues is no sound way to avoid them. Plenty of issues can’t be avoided, such as customers not paying you on time. But you can take care of them when they happen, and you’ll find finance will help with that especially if your issue is a lack of cash in the business for one reason or another.
Types of small business Finance
If your business is struggling to operate because it’s cash-poor, you can inject cash quickly by taking out small business finance.
Business Finance is the fastest way to raise working capital. You can borrow from £10,000 to £500,000 with us, and there’s are a few different types of finance available to suit your circumstances and the amount you wish to borrow.
Secured business finance
Secured funding is relevant if you need access to a higher borrowing limit, typically over £50,000 and up to £500,000. With secured finance, the total amount is secured against a business or director-owned assets such as real estate.
Unsecured business finance
Unsecured funding is most relevant to you if you wish to borrow less than £50,000 for your business. You don’t offer collateral with this type of finance. Instead, it is offered to you based on yours and your business’s creditworthiness.
The cost of a small business finance
You’ll pay back finance in monthly instalments typically over 1 to 5 years (12 to 60 months). You’ll pay back the amount you borrow in full over the term, so the cost of your finance is always determined in advance.
Whichever way you go, make sure your payment is fixed, it means you’ll pay back the same amount each month. Lastly, query early repayment charges with your lender before you take out a finance agreement because you may want to pay yours back early. High repayment charges can make this a false economy.