There are situations where a business loan (whether secured or unsecured), a revolving credit or bank overdraft is not the most suitable finance option for that business. There may be other
financial products that are more suited because that are for example, more tax efficient or the business just requires some specialist financial support. In these cases we are often able to help either by working with our finance providers or our contacts with other specialist brokers. Some of the examples that you may wish to consider are:
Leasing equipment, whether (Finance or Operating Leases) is a great option if your business relies on physical assets, particularly ‘high value’ equipment that needs to be upgraded on a regular basis. Keeping up with the latest developments in technology or replacing manufacturing equipment, machinery, computers, vehicles and plant regularly can be expensive and the risks of ownership including financial risks such as depreciation can add to this burden.
We have several lenders on our panel that can arrange to purchase the asset you need and lease it to you, helping you manage your cashflow more effectively. This is can be tax efficient as you can normally reclaim VAT and offset interest payments for the asset against profit – you will need to confirm your situation with your accountant.
You may not realise however that you can often lease assets you already own. This can unlock the value in your high value assets and release cash to develop your business or improve your cashflow and stability. We can also consolidate your existing leasing facilities into a single package.
Business Growth Loans
A number of lenders offer funding solutions that are specifically geared towards business growth. These loans can be used for various purposes, including recruitment, property purchase or renovation work. We work with companies that offer this type of finance, which is tailored to the individual needs of every business.
This sort of lending enables SMEs to release money based on outstanding invoices before they’ve been paid by customers. A third party lends money against unpaid invoices – this is typically between 80% and 85% of the total value. Ask us about helping you find a finance partner that suits your business. Alternatively a number of business owners are using other products such as ‘Revolving Credit’ to manage this challenge. We can talk through some options.
Revenue Based Financing
Some finance providers offer ‘revenue-based financing’. Differing from traditional lending, borrowers only have to repay a percentage of sales each month until their loan is repaid. So, essentially, borrowers only pay what they can afford, meaning it can be efficient for companies that are affected by seasonality, with peaks and dips in sales throughout the year.
This relatively simple, accessible and affordable type of loan is ideal for people looking for start-up, partnership and limited company loans.
Amazon Central Seller Retail Loans
If you are an Amazon Central retailer, you need to be constantly ready for customers who want to buy your goods. However, uncertainties such as ‘dips in income’ can impact your revenue, yet you still need to plan ahead and prepare for the next spike in sales.
We work with a specialist lender who understands this and that you need flexible lending that works hard for your business. There is a suite of small business loans perfect for Amazon Seller Central businesses, and other online merchants, which are designed for the ebb and flow of e-commerce available.
Since time is money, especially in the fast-paced world of online retail, there is normally a speedy, hassle-free application process. This is exactly what you need so you can focus on selling your products while securing extra cash.
If you would like more information or a free consultation on obtaining specialist finance please fill in the contact form with “specialist” in the subject line or you can email or call us to discuss how we can help you find solutions to any issues you may have.