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5 reasons to grow your business with Small Business Finance

Published on 12th April 2019 - Last update on 15th March 2020

Whilst running a small business, your main focus will, no doubt, be to ensure a strong and consistent rate of growth, enabling you to generate and maintain a tangible presence within your chosen sector. Yet, although you may have created a detailed business plan, achieving your aspirations isn’t always straightforward, especially if you’re short of cash. But rather than piling pressure upon your finances, you could explore what external funding opportunities may be available to you.

If you’re an emerging SME business and have been trading for at least 2 years, you could qualify for Small Business Finance. Covering a wide range of business finance products, Small Business Finance could provide you with the funds and tools necessary to achieve your goals, regardless of how ambitious they may be. So if you’re looking to grow and push beyond your current business limits, here are 5 reasons to apply for Small Business Finance, including:

  • Access to a wide range of finance solutions
  • Access to an advance or lump sum
  • Applicable to a variety of purposes
  • Suitable for a variety of financial situations
  • Variety of repayment schemes available

What solutions could my business apply for?

One of the greatest benefits of applying for Small Business Finance is the sheer volume of finance solutions it enables you to access. What this means simply is that your ability to source an appropriate product that is able to work around how your business operates and its current financial situation is increased. Depending on what type of funding your business requires, some of the opportunities could include Asset Finance, Secured and Unsecured Loans, Property Finance, Merchant Cash Advance, Overdraft Replacement and Invoice Financing. So in order to make an informed decision that will enable you to drive your business forward and reach new heights, making sure that you’re fully aware of what's available to you is crucial.

Got a business project that needs funding? Or could your SME business benefit from a cash injection? Apply for Small Business Finance or learn more about how your business could benefit.

How much money could I borrow or have advanced?

As well as your chosen finance solution, the amount of funding that you could be eligible to receive also depends on a number of other factors. Whilst some products provide funds for up to a certain amount, other solutions don’t impose any credit limits other than what the lender is willing, or able, to offer. But when calculating how much money to offer your business, lenders will typically assess:

  • Your monthly receivables
  • The equity contained within your unencumbered assets
  • The total predicted cost of the project
  • How much value it’ll add to your business.

Therefore, in order to gain access to the funds that you require, you must make sure that you have a thorough understanding of how each product provides those funds.

What can Small Business Finance be used for?

Many of the products on offer carry no usage restrictions which will affect the way the funds are applied to your business - meaning you can use them for whatever purpose you wish in order to benefit any aspect or area of your business. As such, applying for Small Business Finance can help you acquire more equipment, expand into new areas, open a new branch or even support your business’ working capital. So no matter how ambitious your aspirations may be, Small Business Finance could offer you offer the confidence to pursue and achieve all of your short- and long-term goals.

How does my business qualify for Small Business Finance?

What makes small business loans so useful for developing SMEs like yours is that it’s able to work with a wide range of financial situations. Whilst some products may require your business to possess a strong credit score or offer collateral in the form of unencumbered assets, other products have a more flexible approach and require no such commitments. Depending on your chosen product, lenders may prefer to make decisions based on the strength of your monthly sales, the equity stored within your business' assets or unpaid invoices. So even if your business possesses no physical assets, you could still qualify for Small Business Finance. However, it’s worth noting that possessing a weak credit score will mark your business as having a high risk of default, which may affect your chances of getting an acceptance or how much interest you may need to pay.

How are Small Business Finance solutions repaid?

Because Small Business Finance covers a wide range of specialist finance solutions, this package also allows you to choose from a variety of repayment schemes. Although Fixed Monthly Repayments are the most commonly used, you could also benefit from Flexible Monthly Repayments or even settle the agreement using the money that you’re owed in unpaid invoices, depending on your chosen product. Therefore, in order to ensure you’re applying for the most appropriate finance agreement, and one that your business can safely afford, you need to be fully aware of how each product is repaid before entering into any financial commitments.

Looking to apply for Small Business Finance?

Running a small business can be an exciting step in your career path, and there’s no telling where it may eventually lead. But in order to maintain growth and eventually become a major player in your chosen sector, you also need to make sure that you have access to sufficient amounts of cash. However, this can be a major stumbling block for SMEs, which is unfortunate considering the wide range of funding opportunities that are available. So if you’re looking to take your business to the next level but need access to external funds to make it happen, help is at hand. Whether you're looking to move into your first premises, need to obtain new equipment or receive a cash injection, apply for Small Business Finance today or find out more with Rangewell.

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David Harrison

David Harrison

Content writer
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