5 reasons to grow your business with Working Capital FinancePublished on 17th November 2017 - Last update on 17th August 2019
Having trouble keeping on top of your working capital? You’re not alone. Every day, we run a wide variety of tasks to produce and distribute our goods and services, adding to our working capital or running costs. Although these costs are all part of running a business, many developing SMEs struggle to keep their expenditure at reasonable levels. If not dealt with, your business may face difficulty paying down utility bills, staff wages and tax demands, eventually leading to insolvency. However, there is a way that we can take back control and maintain positive working capital. If your expenses are snatching away more than you can afford, depriving you of key funds for further investment, Working Capital Finance can help. In this blog, we’ll be discussing 5 ways Working Capital Finance can help support your business’ debts, allowing you to invest for the future.
Working capital is at the heart of every business
No matter what sector you’re operating in, or the size of your business, working capital has always been an aspect that needs regular inspection and rebalancing. It’s a measurement of how well your business is performing, informing you on whether operating costs are exceeding both revenue intake and the total worth of valuable assets. If your business’ working capital is negative it requires urgent attention or it will cause your debts to spiral out of control. Left unchecked, the damage will only get worse and may cause you to lose your business. Ideally, we all want to possess a positive working capital, but not all of us may be aware of our working capital situation. That is why, in every quarter, you should review your working capital. To review your working capital you’ll need the total worth of your Current Assets and to deduct your total Current Liabilities. If your working capital turns out to be negative, act now to get manufacturing equipment finance.
Invest in future business operations
Because Working Capital Finance contains a range of specialised finance products, more and more business owners are factoring this flexible finance package into their business plans. By choosing Working Capital Finance you can upgrade your current equipment to higher spec models, refurbish your premises and even expand upon the services you can offer. By investing in new equipment, boosting efficiency, encouraging productivity and carrying out vital projects that may attract customers, you’ll enhance your Current Assets, tipping the scales in your favour. With the right tools and financial support at your disposal, anything is possible!
Support slow trading periods
Most UK business sectors tend to experience seasonal trade fluctuation. As such, some businesses may need additional support during slow trading periods. With Working Capital Finance, you can find a business finance product that flexes and adapts to your business’ needs. So when you hit high sales seasons, you’ll be ready to seize the initiative and make the most of any business opportunity.
A wide range of business finance products
One of the reasons why SMEs owners are choosing to support their business with Working Capital Finance is because of the variety of products on offer. Unique, flexible and fast, your business could gain access to a number of products, including Merchant Cash Advance, Growth Capital fundingshort-term loans such as Bridging Finance, Invoice Finance and more. So, with so much to choose from, you can source the most appropriate product to remedy any issues affecting your business.
Shorter decisions and faster payouts
Unlike traditional bank loans, applying for Working Capital Finance can connect you to funds you need sooner than you may expect. In some cases, depending on the product, you could acquire the cash you need for your business in as little as 48 hours of applying. In short, it’s cash in your hands when you need it most!
Sourcing the right finance product for your Working Capital
When looking for finance we always run into that inevitable question – ‘Which product should I choose?’ You want one that offers flexibility, but works with your business and doesn’t slap you with high interest fees when your back’s turned. Above all, you want an agreement that gives you room to grow and develop, just the way you intended. But finding the most appropriate business finance product for your business can prove challenging, especially on your own.
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