Getting business finance can be easy, once you know howPublished on 6th July 2016
When starting a up a new business, owners have a tendency to pour their own money in. However, as the business develops external sources of funding might be required. There are always more and more funding options emerging, giving both big and small businesses a vast selection of funding options.
This can be put down to the emergence of Fintech companies over the past few years. Fintech companies currently stand as an alternative to high street banks when regarding the acquisition business finance. Fintech companies use technology to make the process of seeking business finance simpler and more efficient. As time progresses and attitudes change, Fintech companies could eventually become the first port of call when seeking business finance.
Here’s few tips you should keep in mind while seeking business finance.
What’s on offer?
You’ll need to weigh up your options carefully. Carry out research and find resources that can help you understand the various aspects of any offers. Prioritise lenders that offer a diverse array of services. Do they offer guidance and extra services to small businesses, for example? Look around, you might be pleasantly surprised by what you find.
Speed and efficiency
Small business owners are often short of time, trying to manage the many aspect of their business. This makes finding business finance seem daunting and stressful. But, the emergence of Fintech companies can help take the aggravation out of finding the right business finance plan. Using technology, Fintech companies can present you with a range of suitable finance options depending on your business type and situation in moments.
Another way of ensuring you can easily get access to financial products is to ensure that your business has a high credit rating. If you don’t you may want to remedy this by ensuring that you make payments on time and don’t have any county court judgements (CCJs) hanging over your business. Making sure your business’ credit score as high as possible will broaden the array of lenders willing to provide you with business finance.
How open are they?
No two financial products are ever the same and they’ll often vary from lender to lender. As such you need to make sure you know exactly what you’re signing up to. Always check the terms carefully. How much is the loan going to cost? How frequently do you need to make payments, and for how much? Are there any other terms or conditions attached? Always make sure you understand every aspect of the financial product you’re signing up to. Don’t get tied into an agreement that’s too expensive or too demanding as that’ll cripple your business.
Know your lender
At the same as selecting a financial product, your need to make sure that the lender is right for you and your business. Lending business loans is a growing and competitive industry, which is great news for start-ups and small businesses, providing you know where to look. When considering a financial product, you need to consider who the lender is and their reputation with working around small businesses. How focused are they on helping to develop your business? Can you get in contact with the lender dealing with your loan so you can ask questions? But beware, if a lender is too easy to contact, it might be an early indicator of how they balance helping your business with their desire to strike deals.
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