Rangewell

Why borrowing is vital for business growth

By David Harrison
Content writer
Last update: 18 November 20191 minute read
Why borrowing is vital for business growth

Table of Contents

Whether you’re a start-up or already established, ensuring business growth is vital to your long-term success and competitiveness  – it must never fall into stagnation.

Many business owners tend to pour their capital into the early stages of their business and, although this may seem like a good idea at the time, it often leads to an array of issues as the business tries to develop and expand into new areas. Having used your capital so soon, when you try to grow and cover a greater market, you may lack the funds necessary for your plans to succeed.

This can lead to many business owners either holding off their plans or canceling them entirely, resulting in slow or stunted business growth. As a business owner, you must always be looking towards the horizon. If your business isn’t growing, you really need to ask yourself why and come to a resolution, urgently.

Growth Finance

A specialised finance package designed to help businesses at every stage of their development, growth finance is intended to supercharge your business’s expansion and ability to succeed by granting the funds necessary for you to realise your business growth goals.

So whether you’re looking to extend, add new facilities, acquire new equipment or even secure a fleet of business vehicles, growth finance can help. This tailored finance package consists of a wide range of loans, leases, Hire Purchase solutions and much more, providing everything your business needs to succeed and flourish.

  • Loans: With a loan you can borrow anything from £5000 to £1 million. Unsecured loans let you borrow money for your business without putting assets, such as your house, at risk. To reassure the lender, a guarantee that you’ll pay the money back in due course will be required. Meanwhile, a secured loan may allow you to borrow more money as it boosts lender confidence. The reason for this is that assets can be sold to recover costs should a business fail to pay back the loan.
  • Leases: A great option for those who don’t want to be encumbered with the burden of ownership. Instead, you’ll borrow equipment for a period of time and will be required to make monthly payments, plus interest. Leasing terms can last from 1 – 3 years, subject to your agreement. Monthly payments are manageable, allowing you to pay from your business’s revenue stream rather than your capital.
  • Hire Purchase: If you are seeking to eventually own the equipment in question but can’t afford to make full payment straight away, hire purchase is for you. You’ll be required to pay an initial deposit in the region of 10% of the asset’s value. From there on, you’ll be making monthly payments, plus interest. Once these payments have been completed ownership passes onto you.

Why Rangewell?

Our values are simple – we’re on your side. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.

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