UK tech SMEs set for dramatic growthPublished on 23rd March 2017 2017-03-23T22:50:54+00:00 - Last update on 13th January 2020 2020-01-13T11:08:33+00:00
According to a survey carried out by Albion, UK tech companies are set to inject dramatic growth into their businesses in time for 2019. Without a doubt, this will come as fantastic news for SME owners and British consumers alike. As it currently stands, the UK tech industry is estimated to value in the region of £161bn. This figure could rise substantially should more business owners succeed in their goals.
The survey quizzed tech entrepreneurs about their plans for future business growth. What they discovered was that 65% of respondents fully intended to grow their business in spite of the political and economic turbulence. Of those who intended to develop, their responses indicated an expectation to experience either moderate or dramatic growth in the run-up to 2019.
This is all great news for the industry, but for these expectations to materialise business owners must pursue and secure that one vital ingredient – funding.
When it comes to your business’s growth you simply cannot afford to be modest and rely on your personal funds alone. Growing your business is all about going big with your idea, maximising potential and boosting your share of the market. Only by applying for business finance can this be achieved, and in particular Growth Finance.
Favoured by many business owners alike, this package can, and will, allow your business to reach new heights fast. Whether you seek additional equipment, branches or even an entire fleet of vehicles, growth finance provide you with the means to do so in complete confidence. Consisting of an array of financial products, your business could benefit from anything from business loans, leasing agreements, hire purchase solutions and much much more!
Business loans often come as either secured or unsecured, accompanied by a variety of terms that are either short or long term. Short-term products can last from 1-3 years, whereas long-term products may range from 3-6 years or more. Terms dictate exactly how long your business must commit to making monthly repayments, plus interest.
With an unsecured business loan, you could potentially secure a lump sum in the region of £5,000 to £250,000. Although you’re not required to set aside assets for security, you could offer a personal guarantee in order to gain a larger lump sum.
However, with a secured business loan you may acquire a sum in the region of £5,000 up to as much as £1,000,000. In exchange for a much larger sum, this product will require you to set aside assets for security. This will allow lenders to reclaim these assets if your business becomes unable to complete the monthly repayment scheme.
With invoice factoring you could can you receive a lump sum based upon a percentage of your outstanding invoice. This is usually used as a means of support whilst you await payment from the customer. Until the customer pays you in full or begins making instalments, you won’t be required to repay your finance provider. But that said, your provider will set down a term and once that period passes they’ll expect repayment, regardless of whether the invoice has been paid or not. The repayment usually consists of a monthly repayment scheme, plus interest and any services costs.
Another great method for getting what’s owed to your business is through invoice discounting, which essentially accelerates the cash flow recovered from your customers. This option works by submitting the details of an outstanding invoice to your finance provider but, instead of the customer paying you, they pay it directly to your finance provider. During this time you’ll receive a lump sum, possibly within 48 hours of your initial application. But when it comes down to ensuring payment from your customer is forthcoming, you can either assert yourself as the credit controller or the finance company may have a ledger service that could initiate the collection process. Once your finance provider has received the funds from your customer a balance is made available to your business, minus any incurred fees.
Merchant Cash Advance
Often mistaken for a loan, this particular product is best suited to sectors such as retail. The reason being that this product relies on your monthly receivables or revenue generated by your credit and debit card paying customers. After reviewing 3 or more of your business’s consecutive monthly sales reports, a potential finance lender may offer to
purchase your potential earnings for one particular month, at a discount. Decisions as to whether to lend to your business are based solely on your sales, so no need to worry about credit scores or unearthing business histories.
However, what makes this product stand apart from a business loan is how the product is repaid. A lender may offer you the lump sum for a rate in the region of 20%, for example. What this means is that 20p of every £1 you card customers spend is removed to pay back the lender until the product has been fully repaid. So, if you make fewer sales on a particular month you pay less, but should you experience more then you’ll pay more.
Our values are simple – we’re on your side
At 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 business 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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