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Cashflow Finance for Welsh businesses

Published on 19th December 2018 - Last update on 13th January 2019

Running a small business in the heart of Wales boasts many advantages, such as competitively-priced commercial property, skilled graduates, a thriving technology market and lower living costs compared to London. However, Wales’ economic climate also presents a unique challenge too, especially when it comes to maintaining your bottom line. But there are a number of ways in which Welsh SMEs can gather the strength and support they need to tackle the issues affecting their cash flow. One such way is by applying Cashflow Finance, which offers you access to a number of specialist business finance solutions. So if you’re running a small business in Wales and need help managing your cash flow, here’s what you need to know about Cashflow Finance.

Why is cashflow so important?

Whether you operate in the center of Cardiff or along the coast of Swansea, maintaining a stable cashflow is essential. It’s an aspect that dictates your ability to support day-to-day operations, drive growth and provides the basis for your salary. But, there are a number of issues that can have an adverse effect on your cashflo, including local competition, local economic factors (cost of living and wage demographic), business tax, changing trends and debt levels. Left unchallenged, this could make it difficult to support your business’ expenses and perform essential tasks, eventually leading to insolvency. Fortunately, that’s where Cashflow Finance could help.

Having difficulty managing your business’ cashflow? Need access to capital sooner rather than later? Apply for Cashflow Finance or learn more about how your small business could benefit.

How can welsh SMEs support their cashflow?

As an SME operating in Wales, it’s easy to assume that the funding opportunities available to you are limited. But if you’re in the midst of a cash flow crisis and need funding a hurry, there are many ways in which this can be achieved. For many Welsh business owners, the answer is applying for Cashflow Finance and gaining access to products such as Merchant Cash Advance, Invoice Finance, Overdraft Replacement and Asset Refinance. Therefore, with so many different products to choose from, you have greater flexibility when it comes to sourcing an agreement that’s appropriate for how your business operates.

How do I apply for Cashflow Finance?

As well as choosing the most appropriate solution for your business, you also need to understand what will be required when making an application. Although Cashflow Finance is available for a wide range of financial situations, the success of your application depends on you appreciating what lenders take into account and the effect it may have. As such, the 3 areas you need to focus on are:

  • Creditworthiness: When placing an application for Cashflow Finance, lenders will usually request permission to access your business' credit profile in order to understand its current financial status. As such, when carrying out their checks they’ll incorporate whether you have past and/or outstanding CCJs, Accelerated Payment Notices, arrears, unpaid debt (e.g. credit cards) and a history of resolving debt on time. However, depending on the product, your credit score won’t necessarily be used against you but it will affect how much interest you’re charged throughout the agreement.

  • Security: Cashflow Finance offers you a variety of products that are either Secured or Unsecured. If you decide to use a secured product, you’ll be required to present lenders with one (or more) of your business’ unencumbered assets, such as equipment, machinery, vehicles or unpaid business-to-business (B2B) invoices. Though this gives lenders more confidence in your commitment to the agreement, your assets are at risk of repossession should you default. Meanwhile, unsecured products don’t require the use of security but generally, possess stricter lending requirements and charge more interest on account of the increased risk to the lender - though there are some exceptions.

  • Documents: You also need to factor in what documents you’ll need to provide alongside your application, as well as the appropriate format to submit them in. Although this should all be outlined in the documents you’ll receive from the lender when making an enquiry, you could be asked to submit anything from proof of identity, recent and past bank statements, Profit and Loss statements, cashflow forecasts, sales reports and unpaid business-to-business (B2B) invoices to tax returns. So in order to avoid unnecessary delays, be certain to get everything prepared beforehand.

Need help supporting your small business?

As exciting as it may seem, managing your own small business in Wales isn’t without its fair share of challenges. But rather than getting yourself into a panic, the key to the situation is being able to take action and rally the support your business needs, which is why applying for Cashflow Finance can be so invaluable. Depending on the product, you could receive a decision in as little as 48 hours, with the agreed funds following soon after. So in order to make an informed decision, understanding each of the options that are available is essential, which is where speaking to a qualified business finance professional can help.

At Rangewell, we’re an Access to Finance specialist who has mapped over 400 lenders to offer you an overview of more than 23,000 business finance products for your business. Our services are always free to use for SMEs and their advisors and we’ll also guide you through the application process. So if you’re looking for a way to support your business’ bottom line, apply for Cashflow Finance today or find out more with Rangewell.

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