Nationwide Finance can arrange business finance faster to fund short-term cash flow problems, providing companies with essential working capital, thus relieving any immediate cash flow pressure. These business facilities can be for between £10,000 and as much as £500,000 and payment can often be made into your company’s account the same day.
Cash Flow Problems
When planning your company’s finances, you may have based your cash flow projections on a large new order, an order that at the eleventh hour is cancelled leaving your careful cash planning in tatters. Funding is now immediately required as you will still have certain commitments but no funds from that new order now coming to provide the cash that you need.
Similarly, you may be waiting for the payment of a significant invoice. “The cheque’s in the post” from that blue chip or a long-standing customer, except it does not arrive and the funds that you would have and had earmarked to pay this month’s wage/bills, are just not there yet.
Funding Landscape Has Changed
Previously in these instances, your bank manager would have come to the rescue and plugged your cash flow gap with an overdraft, but the rules have changed and the bank is no longer there for many companies.
The implications of the cashflow hole could be significant and have potentially catastrophic consequences for your business. Those unpaid creditors may start legal action against the company in order to recover their debt, which may, at best, have an adverse effect on the company’s credit rating and, at worst, result in a winding-up petition being presented against the company. If the staff is not paid, you may lose their loyalty.
If, however, your underlying business is fundamentally sound and it has the ability to repay a facility over a period of time of up to 5 years, then why consider radical solutions like formal insolvency or selling equity in the business over a simple cashflow hump?
Why not seek an alternative method of short-term funding in order to make the immediate payments and repay the liability when funds are available? We are here to solve the problem of where to obtain that short to medium term funding from and can help out businesses of all types.
There are, of course, some criteria which would need to be met in order for funding to be provided:
- The business must be fundamentally viable
- There should be no history of continued losses or you should have a clear plan in place to eradicate future losses
- There must be evidence of a clear ability to repay
- A personal guarantee will be required
If these criteria can be met and business finance is determined to be the appropriate method for dealing with a company’s cash flow problems, a solution can be provided that enables ongoing trading, allows you, the directors of your company to remain in control and deal quickly and easily with a problem that may otherwise pose a significant risk to a business.