Cash Flow Burn Explained

Ensuring that your business maintains a reliable cash flow each month is vital to its long-term growth and sustainability. However, there may be times when your business suffers from poor revenue, putting your finances under tremendous strain. There can be any number of issues that can have a negative effect on your cash flow, ranging from slow sales or changing trends to maintenance costs.

Some of these issues can be identified as being your ‘Cash Flow Burn’. What this term describes is the rate at which you’re eating into your business’s cash reserves and whether more money is leaving your account than entering. Unfortunately this is a common issue for many businesses, especially among the startup community. However, there is a solution.

Resolution

Cash Flow Burn often comes as a result of poor funding, illustrating the vital role that business finance plays. Without access to essential funds your business will struggle to complete key projects and acquire crucial equipment for daily operations. If your business is suffering the effects of cash flow burn, Rangewell is here to help. With our expertise and in-depth knowledge of a number of sectors, we can source the perfect finance package for your business, including Growth Finance.

Growth Finance

A highly-specialised finance package, growth finance is the means in which you can secure vital funds necessary for any, and all, growth projects. Consisting of an array of finance solutions such as business loans, leases and Hire Purchase, you could secure the means to turn your negative cash flow around!

• Loans: Business loans are an excellent way of securing a cash injection. They can be used in any way you see fit and are essential for growth. By applying, you could gain a lump sum, either secured or unsecured, from £5,000 up to £1,000,000.
• Leases: If your business is looking to sample or secure equipment for a limited time, leasing is a useful tool. Instead of owning the equipment in question, you could borrow it for an agreed period of time instead, in exchange of monthly payments plus interest. Should you decide to keep it, you can extend the leasing term or present a buyer.
• Hire Purchase: If you’re seeking to own equipment, but lack the necessary funds for an outright payment, hire purchase can help. Before you receive the asset and are able to make full use of it, you’re required to pay an initial deposit pertaining to 10% of the asset’s total worth. From here on, you’ll then commence with repaying the remaining sum through monthly payments. Once full payment has been made, plus interest, ownership of the asset passes on to you.

Why Rangewell?

Our values are simple – We’re on your side. Our services are clear and transparent. 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.