Posted 25/08/2020 by Justin Lavery
When obtaining borrowing for your business you should be clear with yourself what the money will be used for. This will not only ensure that you obtain the right amount of funding, but it will also help you select an appropriate type of funding.
While loans are useful in many instances, some companies may find more benefit in exploring alternative avenues of funding. Companies who have a ledger of invoices which have gone unpaid may be better suited to invoice discounting or invoice factoring, which will give them access to a percentage of the money the company is awaiting. This can help ease money worries now and also in the future, giving an element of certainty to directors and allowing for better cash flow management.
We can also look at Merchant services that allow retailers to use their card machine to provide lines of credit based on the revenue stream having limits set against weekly takings and repayment terms set against income.
These types of funding are extremely flexible and unlike a Bounce Back Loan, it can be turned off once the need for it has passed, rather than the company being tied to the agreement for six years.Back to Blog