Boost your cash flow fastFebruary 21, 2017
Ensuring cash flow is a vital part of running a successful business into a sustainable future. However, through no fault of your own, your business may run into difficulty. Sometimes it could be seasonal trading issues, a change in the trends, vandalism of your premises and so on. But nevertheless, no matter what the cause may be the show must go on. Without a reliable stream of revenue, financial difficulty is a certainty which can easily progress to insolvency if not dealt with promptly. However, it doesn’t need to get far. With access to fast business finance, the issue can be nipped in the bud before it gets out of control.
Cash Flow troubles
If you’re in the midst of a cash flow crisis, access to fast cash can make all the difference for your business. What your business needs at such times is targeted aid and support, which is where the alternative finance industry can help. There’s an extensive range of business finance products on offer, all tailored to your individual business’s needs. All you need to do is apply. Just some of the products that your business can apply for may include Invoice Finance, Merchant Cash Advance (MCA) and Asset Refinance.
- Invoice Finance: If your cash flow crisis is caused by multiple customers not paying for the goods and services they received on time, Invoice Finance can help massively. With this business finance solution, you could unlock up to 90% of the cash tied up in each of your unpaid invoices. Plus, until your customer pays up in full or begins paying in instalments, the monthly repayment scheme won’t come into action. That said, however, lenders may specify a term outlining how long they’re prepared to wait. If this period elapses and the customer still hasn’t paid up, the lender will activate the monthly repayment scheme regardless, plus interest.
- Merchant Cash Advance: With this option, your business could receive a lump sum within 48 hours of applying, based solely on your monthly credit and debit card sales. In order to qualify, your business must support card-based sales and be able to produce, on demand, 3 or more of your business’s latest consecutive sales reports. Plus, what makes this such an attractive finance solution for many businesses is that there’s no need to produce your credit score as this isn’t taken into account. How this finance solution works is by a lender offering to purchase your expected takings for one month, otherwise known as ‘receivables’. But what makes this product truly unique is the repayment scheme. Unlike like the typical business loan where you pay a fixed lump sum each month, a Merchant Cash Advance takes a percentage of your potential monthly sales. For example, the lender could propose a percentage in the region 18% of each of your card sales, which can also be described as 18p from each £1 your customers spend. Because of this, the repayment scheme is one of the most flexible in the finance market and means that if your sales go down during one particular month the amount you have to repay is reduced and vice versa.
- Asset Refinance: If your business contains a lot of expensive equipment, Asset Refinance could be an attractive finance solution for your business. Using the value of each, or selected, assets contained within your business ledger, you could secure a lump sum based upon the total worth of each asset put forward. Note that the value of your business assets will also be subject to depreciation. Once you have received a lump sum your finance provider will assume ownership of the assets but you’ll be able to retain their use nevertheless. From here you’ll then commence with abiding by a monthly repayment scheme, plus interest.
How can I get Business Finance for my business?
If you’re looking for business finance, the Alternative Finance industry is certainly the best place to begin your search. However, this industry has grown exponentially making this task seem all the more daunting than it needs to be. This is why companies such as Rangewell are helping business owners just like yourself find the perfect business finance solution to suit your needs.
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