What is Small Business Finance?Published on 26th March 2018 - Last update on 16th October 2018
Starting off small, you’re at an exciting stage in your business’ development. The scope, potential and pathways available to you are vast. However, as well as having a great business plan, you need access to funding opportunities for any of this to happen. Whilst your finance options are more limited (but not impossible to achieve) immediately when you start your business, as soon as you hit your second trading year your finance options really open up. Small Business Finance is a package designed to help both SMEs and established firms achieve their long-term goals, whatever they may be. So if your SME needs access to external funding, here’s what you need to know about Small Business Finance:
- Why apply for Small Business Finance?
- What does Small Business Finance offer?
- What criteria is required for Small Business Finance?
How can Small Business Finance help my business?
Whether you’re a developing SME or an established firm, you can’t afford to rest on your laurels. You must be constantly looking for new to ways to grow your business to ensure a strong and sustainable future. Yet, as a small business, you’re likely to be working to a tight budget. This makes it difficult to achieve your goals and provide financial support wherever it’s necessary, which is why applying for Small Business Finance is crucial during the early stages of development. So as well as providing your business with a cash injection, Small Business Finance can also be used to help buy and spread the cost of equipment, update technology, refurbishments, pay employees, purchase stock or even marketing. Therefore, Small Business Finance offers you the confidence and reassurance to pursue everything that your business needs to succeed.
What finance solutions are available?
Small Business Finance covers a wide range of business finance products, enabling you to pursue each of your goals to the fullest. By choosing to apply for Small Business Finance, just some of the products that you could benefit from include Asset Finance, Secured and Unsecured Loans, Merchant Cash Advances, Invoice Financing and Revolving of Credit Facilities. Therefore, there’s no need to delay or cancel any of your business plans, not when there are so many funding opportunities to choose from.
How can my business qualify for Small Business Finance?
Because each product works differently, with their own set of requirements, it makes Small Business Finance accessible to a wide range of financial circumstances. So, if you or your business owns valuable assets (equipment, machinery, vehicles or real estate), you could use them as collateral to gain a Secured agreement in order to receiver larger lump sums and favourable terms. But if you aren’t asset rich or you’d prefer not to risk them, don’t worry, there are still plenty of Unsecured solutions on offer which could provide your business with the support it requires. Note that some lenders may ask for a Personal Guarantee in order to gain additional protection.
Meanwhile, Small Business Finance also takes a flexible approach to your business’ credit profile. Whilst some products may demand a strong credit score in order to qualify, others may not, preferring instead to look at other factors such as your monthly sales. Nevertheless, lenders often look at your credit score in order to assess the risk that they may be taking on when lending to your business. As such, lenders may check whether you have outstanding CCJs, Arrears, Accelerated Payment Notices or a reliable history of settling your debts. Although a strong credit score isn’t always a requirement, it’s worth being aware that lenders may use it to determine the interest rate that you offered, affecting the overall cost of finance.
Do you need Small Business Finance?
Although cash is essential to your business, acquiring it in sufficient amounts isn’t easy. But if you’re looking to achieve your goals without straining your working capital, there are avenues available to you. Whether you’re looking to support your finances or complete an essential business project in order to seize upon valuable opportunities, applying for Small Business Finance could be the answer. But with so many different business finance solutions to choose from, sourcing an appropriate product can prove challenging unless, of course, you know where to look. If your business is in need of a cash injection, new equipment or funds to complete a crucial project, apply for Small Business Finance today or find out more with Rangewell.
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