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£50,000 ‘Jigsaw’ Finance: Dealing with the challenge of rapid growth
The design and media sector is thriving as the internet changes the rules and opens up new possibilities. Many new businesses are growing rapidly as a result but, as with all small businesses, banks may be reluctant to lend - especially when a business has only been trading for a short time. Many small businesses with full order books and exciting prospects find their plans frustrated by a lack of funds. This means that, as an accountant dealing with clients in the design and media sectors, you may frequently be approached for funding solutions. At Rangewell we can provide innovative answers that can help you answer your clients' needs - even when conventional solutions cannot help. The challenge We were recently approached by an accountant based in East London’s Shoreditch. Thanks to the location of his practice, and his enthusiasm for new and innovative businesses, he had built a list of clients working in the creative and media sectors. They included a small graphics studio which had outgrown its modest rented studio space, but which was finding the cost of acquiring new premises daunting. As the accountant explained to his client, creative people had flocked to this part of London for the low-cost floorspace and proximity to the City. But the popularity of the area, with the arrival of Google and other major names, had forced rents up. The accountant discussed the problem with his clients. Moving out of the area would disrupt the existing business. The business needed to grow to capitalise on their growing reputation, but without extra usable deskspace, the studio could not take on the extra designers. The accountant saw that additional funding would be essential to provide the necessary deposit on a bigger working area, bring in equipment for additional designers and to provide working finance during the planned growth. He approached Rangewell to provide answers. Are you looking to help your clients find the funding they need to grow their businesses? Do you want to add an income stream to your accountancy practice? Become a partner today or find out more How we helped Business lenders can be reluctant to lend to any business which has cannot demonstrate a long trading record. Without several years' of audited accounts, even a successful business may be seen as a start-up. At Rangewell, however, we know that lenders do exist who cater for businesses who do not have a long trading history - but that costs may be higher. But we also know that by getting the most appropriate type of funding for each business purpose, costs may be reduced. We looked at the figures with the accountant and the business owner and, together, we broke the funding requirement down into several different needs: To acquire new premises Bring in new equipment and assets Provide working capital We then looked at the most appropriate type of funding for each need. Funding for studio premises Whether the client settled on a serviced office or a long-term lease on bare space, an upfront payment would be required. An unsecured loan might be the best way to provide it. Funding for studio equipment Top of the range IT, as well as conventional office equipment,was required. Asset Finance - incuding Hire Purchase and Leasing - can help make virtually any type of equipment affordable by using the asset as the security for the finance. Working Capital Working Capital Finance can help a business stay afloat and pay staff while cashflow is slow. It is designed to be repaid in the short- to medium-term, as soon as profits start to become available. Tax Loans - helping deal with demands A large quarterly VAT or annual tax demand can cause problems with cash flow for any business, but especially smaller ones. A Tax Loan could help smooth the flow of cash, and release funds for growth. 'Jigsaw' Funding as a solution We then devised a ‘jigsaw’ funding plan, made up of several types of finance. Because we are completely independent, we were able to approach a number of providers - a challenger bank for the premises funding, an established Asset Funding specialist for the equipment costs and an online lender for the short-term working loan. We were able to assemble a financial package which would offer the most cost-effective funding for each need - keeping costs down overall. The accountant had the satisfaction of having helped his client realise his growth plans, and was also able to share in commission from the loan providers. We help accountants find answers to all kinds of funding needs for their clients. Loans, Asset Finance, Commercial Mortgages or any other kind of finance - we find the most appropriate solutions while our network of contacts and our unique online tool let us find the most cost-effective rates. Because we work with all types of business funding from lenders across the entire UK market, we can find solutions for any funding need. Our service is independent, fast and absolutely free. Simply call us at Rangewell on 020 3637 4150 - or email [email protected] Our service is free.
£20,000 recovery finance to help turn around a transport business
As an accountant, you probably deal with clients who face serious challenges, as well as those who need your help to deal with their success. Being able to find solutions is essential. But being able to source the funding your clients need to recover may mean an additional source of revenue for you - along with the ability to provide a vital additional service for your clients. Of course, helping your clients recover is not only personally and professionally satisfying for you. Keeping a client in business will, ultimately, help you generate more revenue. We were recently approached by an accountant with a practice based in Ipswich. Their client was a transport business which was facing trading difficulties when one of their largest clients, a vehicle import/export specialist, switched from Felixstowe to Southampton. The challenge “My client had his staff drivers and his transporter fleet standing idle, and was losing £5,000 a month.” The client was working hard to find new contracts, but his specialist vehicles were limiting the work that he could take on - and keeping up finance payments on vehicles and dealing with large wage bills were eating into his reserves. When he came to review the figures, the accountant saw that the business was heading for insolvency, and would face problems when the next tax bill was due in two months' time. “The business itself was very viable, and new contracts might be found if the tendering process went well. But costs were coming in even though loads were not, and the window of opportunity was closing fast.” The accountant sat down with his client and examined the possibilities. The problem was cashflow - the client was reluctant to let his drivers go and disposing of vehicles would, obviously, be the last resort. A cash injection would be essential if the business was to stay afloat, but if suitable funding could not be found, turning to an insolvency professional might be the only option. He approached us at Rangewell to provide help. Are you looking to help your accountancy clients with business finance? Or do you want to introduce avaluable new service along with an additional income stream for you? Become a partner today or find out more How we helped Business lenders are, understandably, wary of lending to any company which is trading at a loss. However, at Rangewell, we know that lenders do exist who cater for businesses experiencing adverse trade conditions. Costs will, naturally, be higher than for more conventional propositions, but it may be possible to provide funding to companies who are experiencing financial difficulties if suitable security can be arranged. However, the position was complicated by the fact that the client was already using his depot as loan security, but we looked at the figures provided by the accountant, and worked with him to see what assets the client could call on. Refinancing vehicles might offer a solution - but we saw that the depot might still provide a way to raise the necessary funds. We approached the lenders who we knew might take a sympathetic approach, and discussed a second charge bridging loan. A second charge bridging loan Bridging loans are, of course, short-term loans used to buy property. However, because they are secured on the property itself, they can also provide a source of funding that can be used for any business purpose. We found a lender who could provide a loan of £25,000 as a second charge briding loan. Interest rate were high, and administrative and other costs would add up to almost £5000, but the £20,000 remaining would allow the business to deal with the immediate bills and provide working capital for the next few months. “My client recognised that using the equity in his depot was the best way to keep his business on the road.” The accountant recommended that his client took the loan. He was able to deal with creditors and ensure that HMRC were paid, while the client found additional work. A new contract with an Essex-based distributor allowed the business to keep drivers and vehicles fully occupied and, with the accounts showing a business in profit once more, the business owner was able to refinance at a lower rate and pay off the bridging arrangement inside the agreed 12 months. The accountant was able to provide his client with the support he needed to stay in business - and had also earned a welcome commission from the loan provider. Does your practice work with businesses in financial difficulties? If you are looking for a solution to help a client recover, you may need specialist help. Simply call us at Rangewell on 020 3637 4150 - or email [email protected] Our service is free.
Fast Business Loans: what SMEs need to know
As any experienced business owner will tell you, running and maintaining your own venture isn’t easy. Of course, it can very exciting to see your idea grow and thrive, but it also involves more than its fair share of unique responsibilities and challenges. In order to maintain day-to-day operations or see key projects reach fruition, it goes without saying that having access to sufficient amounts of capital is vital. But this can pose a major stumbling block for many SMEs, especially if you need funding at short notice. Yet if you’re looking for a Fast Business Loan in order to gain access to quick cash, this needn’t be a problem, providing you know where to look. What can a Fast Business Loan be used for? At any point in your business’ develop you may run into a situation where you need access to additional capital, sometimes even at short notice. Fortunately, there are plenty of Fast Business Loans available that could help. Plus, many of these products to impose little or no usage restrictions, but are frequently used to support everything from late payments, unexpected expenses, business tax, uneven cash flow, emergencies, staff wages and supplies to projects that have gone over budget. As such, a Fast Business Loan could be an invaluable tool in your business’ arsenal. The next challenge is identifying what products are available and sourcing an agreement that’s most suitable for your business. Looking for help with supporting your business’ growth and day-to-day operations? Need additional funds at short notice? Apply for a Fast Business Loan and learn more about how your business could benefit What types of Fast Business Loans are available? Exploring the UK lending landscape can feel intimidating at the best of times. However, this is especially true if you’re looking to gain access to quick cash and are unfamiliar with how many of the finance solutions that are available work. But by holding your ground and looking deeper into what’s on offer, you may be pleasantly surprised by what you may find. So if you’re in need of a Fast Business Loan, suitable products could include Overdraft Replacement, Invoice Finance, Merchant Cash Advance or Asset Refinance. Plus, depending on your chosen product and the complexity of the request, a Fast Business Loan could offer you the funds your business needs in as little 48 hours. Therefore, before submitting an application, it’s vital that you fully understand how each of the products functions beforehand. Overdraft Replacement Overdraft Replacements can be established as either secured or unsecured agreements that can provide your business with a Line of Credit (LoC), giving you instant access to an allowance based up your past income (after an agreement has been agreed). There are no usage restrictions imposed on this allowance and you’re not obliged to make use of any of the funds that the product makes available. However, anything that you do drawdown will be charged interest will need to be fully repaid within 30 - 90 days, depending on the agreement. Plus, as soon as you’ve repaid anything that you’ve borrowed, your business will instantly regain access to this allowance on a revolving cycle. As such, Overdraft Replacement behaves very much like a credit card facility, offering your business a protective buffer. Invoice Finance Meanwhile, Invoice Finance offers you the ability to release up to 90% of the capital tied up in your business’ unpaid business-to-business (B2B) invoices, and is also not subject to any usage restrictions or borrowing limits. A secured package that uses the capital contained within your unpaid B2B invoices as collateral, Invoice Finance is most commonly available as Invoice Factoring or Invoice Discounting. Factoring: this could be a useful solution for your business if you’re able to generate an annual turnover of no less than £25,000. You also need to maintain up-to-date business ledgers and have the capacity to exercise successful credit control procedures. But, you do have the option of passing credit control duties on to the lender who will pursue the debt on your behalf whilst exercising discretion, saving you time. Once the debtor has fully repaid what they owe, the lender will make a balance available to your business. This will be the remaining amount of the invoice (e.g. the remaining 10%) minus interest and service fees. Plus, it’s also worth noting that some providers offer Bad Debt Protection as standard, protecting your business should the debtor fail to repay what they owe. Discounting: this type of Invoice Finance requires your business to generate an annual turnover of at least £100,000. You’ll also need to ensure that ledgers are all up-to-date and that you’re able to carry out successful credit control procedures. However, another key difference between Factoring and Discounting is that, with this option, the debtor pays directly into a lender-controlled facility, rather than your business. Nevertheless, when the debtor has fully resolved what they owe, the lender will, once again, release a balance to your business, minus interest and service fees. Merchant Cash Advance If you need to access quick cash but have an adverse credit rating, you may want to consider applying for a Merchant Cash Advance (MCA). Although Merchant Cash Advance is not considered a loan, it is a useful way of generating an advance for your business using your card-based (credit and debit card) revenue. As such, your business must be able to accept card-based transactions and be able to provide at least 3 or more of your latest consecutive sales reports in order to qualify. This is a vital aspect of the application process since this allows lenders to calculate your average monthly card-based revenue, which determines the size of the advance. So if you regularly generate around £35,000 in card sales, for example, you could receive an advance in the same region, if necessary. Although Merchant Cash Advance is unsecured, lenders pay little or no attention to your credit rating when making a decision. This is because this type of funding uses a Flexible Monthly Repayment scheme that allows lenders to automatically intercept an agreed percentage (sweep rate) of your card-based revenue until the agreement has been fully repaid. Asset Refinance Finally, if you own any unencumbered assets (equipment, machinery or vehicles) that aren’t fixed into the structure of your premises, applying for Asset Refinance could enable you to release up to 100% of the equity they contain in order to generate a lump sum. This lump sum is also not subject to any usage restriction or credit limits other than what the lender is willing, or able, to provide. In addition, this finance solution also offers terms lasting up to 5 years, during which you're required to make Fixed Monthly Repayments, plus interest. Although this is a useful way of generating funds, you need to be aware that Asset Refinance is a form of secured asset-based lending. Therefore, if your business falls behind in the repayment scheme and defaults, the lender will gain the right to repossess these assets. Looking for a fast way of raising funds for your business? Raising funds for your business is vital for driving growth and maintaining successful day-to-day operations. However, despite the necessity, making sure that your business has access to sufficient amounts of capital as and when its required can prove challenging. But if you need funding at short notice, the Alternative Finance Industry is opening the doors to more Fast Business Loans than ever before. The issue is that you may not be aware of what of funding opportunities are available and how they work. Fortunately, help is at hand. At Rangewell, we’re an Access to Finance specialist and have mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you’re looking to raise capital for your business at short notice, apply for a Fast Business Loan today or find out more with Rangewell.
Cashflow Loans for small businesses
For any business to succeed, there needs to be a healthy cash flow on which to build upon. But if you’re an SME, achieving and maintaining your cash flow can feel like quite an endeavour. As you continue to grow and develop your venture, you’re bound to encounter issues that may affect your ability to generate a reliable revenue each month. Although it can be a daunting period for any business owner, you don’t need to confront it alone. Thanks to the Alternative Finance industry, there are a number of finance solutions available that could help. So if you're an SME owner and having trouble managing your cash flow now, or in the near future, here’s what you need to know. Why is managing my business’ cash flow so important? No matter your size or sector, maintaining a reliable cash flow each month is vital for your business’ survival. It directly affects your ability to maintain day-to-day operations, replenish supplies, pay staff, resolve utility bills, replace ageing equipment or even support key growth projects. As such, cash flow is the lifeblood of your business and maintaining it needs to be one of your top priorities if it isn’t already. That’s why, if your business enters a period of sustained cashflow difficulty or you expect to do so in the near future, taking action sooner rather than later may help you to avoid insolvency and any other long-term issues which may result. Having trouble managing your business’ cash flow? Need help sourcing an appropriate finance solution? Apply for Cashflow Finance and learn more about how your business could benefit What can cause reduced cash flow? Despite cash flow being a vital aspect of maintaining any business, even the most well-established businesses can find themselves facing difficulty in this area, sometimes through no fault of their own. Although there are many reasons why a business may have uneven cash flow, some of the most common reasons usually involve late payments, premises rent increases, customer trends, a rise in supplier costs, natural disasters, local economy, damaged equipment and unexpected payment demands. But in order to begin tackling the issue, you need to pinpoint the precise cause(s) of your current cash flow situation, which will enable you to identify the most suitable solution. What finance solutions are available to help me manage cash flow? If you’re having a difficult time maintaining your business’ cash flow, applying for Cashflow Finance could prove an invaluable tool, granting you the means to target the sole cause(s) and keep your business afloat. What enables Cashflow Finance to provide this support is that it allows you access to a variety of business finance solutions, such as Overdraft Replacement, Merchant Cash Advance, Invoice Finance, and Asset Refinance. Overdraft Replacement For many SMEs who are in need of emergency funding, Overdraft Replacement can be a great way of getting access to quick cash. This is because an Overdraft Replacement offers your business a Line-of-Credit, which gives you instant access to an allowance after an agreement has been established (which depending on the complexity of the request could be established in as little as 48 hours). This allowance is based upon your business’ previous income, plus you’re also under no obligation to draw down any of the funds that are made available to you. However, interest will be charged on anything that you do use and the balance will need to be repaid within 30-90 days, depending on the agreement. Once this has been repaid, you’ll regain access to the allowance and will be able to withdraw and repay funds on a revolving cycle. Merchant Cash Advance Meanwhile, if you’re looking for another way of generating quick cash for your business, you could apply for a Merchant Cash Advance. Not considered a loan product, Merchant Cash Advance enables you to receive an advance based upon your business’ card-based (credit and debit card) revenue. As such, you must have the capacity to accept card payments and be able to present lenders with 3 or more of your latest consecutive sales report. Using this, lenders will be able to calculate your business’ average card-based sales in one month. So if your business usually earns around £35,000 in card sales, you could receive an advance in the same region, if necessary. Although Merchant Cash Advance is technically an unsecured finance product (meaning you do not have to use an asset as security to back up your application), little attention is given to your credit score. Plus, a Merchant Cash Advance also uses a Flexible Monthly Repayment Scheme that allows lenders to automatically intercept an agreed percentage from each of your card sales until the agreement has been fully repaid, plus interest. Invoice Finance On the other hand, if you need fast access to cash, you could release up to 90% of the capital locked within any unpaid Business-to-Business (B2B) invoice by applying for Invoice Finance. A secured product which uses the unpaid invoice as security, it also possesses no maximum credit limit other than what the lender is willing, or able, to provide, depending on the type of product you choose and the value of your invoice/s. Most commonly, Invoice Finance arrives in two forms: Factoring and Discounting. Factoring: this could be a useful solution for your business if you’re able to generate an annual turn over of no less than £25,000. You also need to maintain up-to-date business ledgers and have the capacity to exercise successful credit control procedures. But, you do have the option of passing credit control duties on to the lender who will pursue the debt on your behalf whilst exercising discretion, saving you time. Once the debtor has fully repaid what they owe, the lender will make a balance available to your business. This will be the remaining amount of the invoice (e.g. the remaining 10%) minus interest and service fees. Plus, it’s also worth noting that some providers offer Bad Debt Protection as standard, protecting your business should the debtor fail to repay what they owe. Discounting: on the other hand, Discounting requires your business to generate an annual turnover of at least £100,000. You’ll also need to ensure that ledgers are all up-to-date and that you’re able to carry out successful credit control procedures. However, another key difference between Factoring and Discounting is that, with this option, the debtor pays directly into a lender-controlled facility, rather than your business. Nevertheless, when the debtor has fully resolved what they owe, the lender will once again release a balance to your business, minus interest and service fees. Asset Refinance Finally, if you own any unencumbered assets (equipment, machinery or vehicles) that aren’t fixed into the structure of your premises, applying for Asset Refinance could enable you to release up to 100% of the equity they contain in order to generate a lump sum. This lump sum is also not subject to any usage restriction or credit limits other than what the lender is willing, or able, to provide. In addition, this finance solution also offers terms lasting up to 5 years, during which you are required to make Fixed Monthly Repayments, plus interest. Although this is a useful way of generating funds, you need to be aware that Asset Refinance is a form of secured asset-based lending. Therefore, if your business falls behind in the repayment scheme and defaults, the lender may gain the right to repossess these assets. Need help supporting your small business’ cash flow? As well as supporting growth and running day-to-day operations, maintaining your business’ cash flow needs to be a priority. However, when running a developing SME business, access to capital may be limited. This could prove a difficult challenge to overcome, especially if you run into any issues with your cash flow. However, rather than deplete your savings or allow the situation to develop into something much worse, applying for Cashflow Finance could be the answer. All you need to do is source an agreement that’s suitable for your business, which can be just as much a challenge in itself. Fortunately, you need to do so alone. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you need help managing your business’ cash flow, apply for Cashflow Finance today or find out more with Rangewell.
Pharmacy closures - don’t let yours become a statistic
The statistics make the bad news clear - the UK’s entire retail sector is suffering from reduced customer numbers and spend and pharmacies are, unfortunately, not immune. So how can you ensure that your pharmacy doesn't become another statistic? How can you ensure that your business doesn’t join the list of closures? Although customers may be tightening their belts, the real cause of the problem may not be decreased discretionary spend - it is the funding cuts in the health system. At least the funding cuts, changing needs of the NHS and changing patient expectations are all cited as the main reasons for pharmacy multiples shutting branches. As an independent pharmacist, you might take this with a pinch of salt. As a retail business owner yourself, you know that no shop business will ever admit to factors like increased competition from the internet and supermarkets being responsible for restructuring - it would hardly be a positive message for the branches that remain. The supermarkets or the internet? But whether it is increased pressure from the likes of Amazon and Tesco, or the NHS looking more closely at approaches to prescriptions and the dangers of overprescribing, it is evident that retailers across the entire sector – multiples and independents alike – are under severe pressure. Reduced prescription funding and reducing footfall have meant problems for many chains. Some, like the Rowlands Pharmacy group, are planning to sell up to 70 pharmacies and are looking to a move towards automation for their future. Others - such as the Well group - are looking at the hub and spoke model. Boots cutting branches But perhaps the most dramatic news comes from UK leader Boots. Despite a near 10% year-on-year increase in sales, the first quarter of 2018-2019 saw Boots UK parent company, Walgreens Boots Alliance’s adjusted operating income decrease, with weak UK market conditions blamed as the cause. Boots has announced plans to close more than 200 shops over the next 18 months - roughly 8% of more than 2,400 branches. When one of the UK’s largest retailers is closing branches, it is clear that the sector is under real pressure. A silver lining? As an independent pharmacist, you face exactly the same pressures as the multiples - but, fortunately, you may have greater opportunities to retain your profitability. Many of the Boots closures may be simply because the chains have too many branches. Observers believe that as many as two-thirds of Boots branches are within walking distance of each other. This kind of branch closure should actually be good news for your independent business. But the underlying problems of high costs and reduced profitability remain. If multiples, with their integrated wholesale operations, are facing problems, then it may be a problem maintaining profitability as an independent - unless you can drive down costs and increase footfall and sales So what can you do? As an independent, you have greater freedom than the chains to make the changes you need to your business. Become a health business Long waiting times to see a doctor mean that you have probably seen an increase in customers coming in to see you for the answer to routine ailments, rather than their GPs. If you position your pharmacy as a ‘healthcare business’ rather than simply a filler of prescriptions, you can profit from this source of extra custom. You can’t hope to compete with the supermarkets on the mass market items. However, you can provide the personal service that they cannot, and support your service with knowledge and quality healthcare products. When a customer comes in with a simple ailment, such as athlete's foot, or is looking for a way to deal with excess weight or help with smoking cessation, you can provide the advice - and the over-the-counter solutions - that they need. Obviously, you will want to refer patients to their GP if you have any doubts, but providing the kind of advice that you do now and simply making it the centre of your business could mean welcoming in a great many more people. You may be able to set up a specialist smoking cessation service or stock a range of self-diagnosis kits. More than half of adults in the UK may now self-diagnose, according to a recent survey by the Royal Pharmaceutical Society. Easy, early screening, your expert advice and the easy availability of medication can improve outcomes and reduce the load on the NHS - while simultaneously boosting your business. But you may need to invest in staff training and a private consultation area if you are to give the counselling and support that may be required by customers who see you rather than their doctor as the first point of call when they have a medical question. We have a number of ways to help you deal with the costs involved in bringing new business to your pharmacy. Apply today or find out more about funding for pharmacist businesses Provide an enhanced retail experience As an independent, you have always known that the pharmacy is the foundation of your business but that the real profits come from retail. Obviously, pressure on price comes from the supermarkets and the internet, but being able to provide the right product at the right time - and to provide it in a way that delivers a positive shopping experience rather than the utilitarian approach of the supermarkets - is key to profitability. With lines such as beauty and electricals, the ability to offer expert advice, a full range and attractive displays can all contribute to your success. You will need to invest in new merchandising displays and lighting, and possibly in training for your staff, but the benefits in terms of increased business can be dramatic. As a retailer, a Merchant Cash Advance might be a simple way to raise the funds you need to invest in retail equipment. Cut costs with automation Putting a robot dispenser in your chemist shop could be a major investment, but it could quickly pay for itself with increased efficiency, tighter stock control with reduced wastage and reduced staff costs. A business loan could provide a simple way to spread the cost of a dispensing robot scaled for your business - and is likely to undercut the costs of supplier finance. Unsecured business loans can be arranged quickly and are suitable for smaller sums, and can be repaid over an agreed term under 5 years. A very large automated system might require a secured loan, with security provided by your business premises - although this could offer smaller monthly repayments for you. Asset Finance may be able to reduce costs further still. This type of finance is designed to provide the cost of equipment, by securing the funds on the asset itself. This reduces the risk to the lender and so, in turn, reduces the amount of interest you pay and, hence, your monthly repayments. It could allow you to have the dispensing system you need in your pharmacy for the lowest initial cost. Invest in marketing A good position on the high street has always been important to draw customers into your pharmacy. However, you cannot rely on passing trade alone. If you are going to offer new products and services, you need to make sure that your customers know about them. Putting your sales message where it will be seen in your community may require press and poster advertising - and, increasingly, an online presence. You may be able to get the support you need from a local marketing business - and even use a short-term loan to cover the costs required. Getting the financial solutions you can depend on You probably can’t fund the measures you need to keep your pharmacy healthy if you have to dip into cash flow that is already restricted. However, by coming to Rangewell, you can find cost-effective ways to raise the finance you need. We have business finance experts who specialise in the pharmacy sector and who can help you find the most appropriate and affordable ways to secure the finances you need for your pharmacy business to thrive.
Land Purchase Finance
Whether it’s for residential or commercial purposes, land ownership offers a variety of benefits to both business owners and developers alike. However, with the market continuing to grow in value, mustering enough cash to support a land purchase isn’t always straightforward. Yet instead of relying upon your own savings, there is another way to achieve your goals. Land Purchase Finance offers you a variety of ways to finance a land purchase and spread out the costs involved, making the transaction more manageable. So if you’re hoping to purchase land for your business, this is what you need to know about Land Purchase Finance. Why should I finance a land purchase? Land is a valuable resource for many business owners, but the costs involved can push it out of your reach. Yet even if you do happen to possess the necessary funds, making an upfront purchase can punch a hole in your finances which may incur lasting consequences. This is why many UK business owners and property developers choose to spread out the expense across either a short or long-term agreement by applying for Land Purchase Finance. So regardless of whether you’re looking to build your own factory, construct affordable housing, acquire farmland or open a new car park, Land Purchase Finance could offer you the support your business needs to make it happen. Thinking about purchasing land for your business? Need help raising the necessary capital? Apply for Land Purchase Finance or learn more about how your business could benefit What does Land Purchase Finance have to offer? One of the greatest aspects of Land Purchase Finance is the flexibility that it offers. Rather than eroding your own savings, which can cause problems later in your development, you can choose to finance a Land Purchase using either a Commercial Mortgage or Bridging Loan. But in order to make an informed decision, understanding how these two different products operate is essential. Commercial Mortgage If you’re looking for a mortgage to purchase land, Commercial Mortgages are secured, long-term products that can be established for a term of up to 20 years. They’re typically secured against land or property which, in this case, will be the land that you’re purchasing. Plus, although Commercial Mortgages aren’t subject to a set borrowing limit, they offer up to 80% Loan-to-Value (LTV) according to the land’s total purchase price. Yet in order to qualify, the mortgage provider will require you, as standard, to make an upfront downpayment, which typically starts at 20% of the land’s purchase price. This is used to form part of the sum that goes towards buying the land from the seller and, from the mortgage provider’s perspective, gives you a greater impetus to keep up with the arrangement. As such, if you’re looking to save money and gain a favourable interest, you may want to consider providing up to 40% instead, which also reduces how much you’re borrowing. Once this has been paid and the agreement established, you’ll be required to make Fixed Monthly Repayments to the mortgage provider, plus interest. However, the amount of interest you’re charged may vary according to market interest rates depending you’re using a Fixed or Variable Rate mortgage agreement. Bridging Loan Another way of supporting a land purchase is with a Bridging Loan, which can offer up to 100% Loan-to-Value (LTV) depending on the land that you’re purchasing. Designed to be a short-term commitment, they can be arranged on a term ranging anywhere between 1 - 12 months and are secured against the land in question, and/or another property in your possession. As such, lenders will want to know how you intend to repay the agreement on time, which is usually achieved through a sale of assets (e.g. property) or funds from another finance agreement. Yet nevertheless, what you must appreciate is that Bridging Loans operate by treating the Principal (capital borrowed) and the interest accumulated as two separate aspects of the agreement. Therefore, the first step to take before placing an application is to decide whether to use an Open Bridge or a Closed Bridge. Open Bridge: doesn’t tie you down to an exact date, but does require the agreement to be fully repaid within an agreed term (e.g. 12 months) Closed Bridge: requires the agreement to be fully repaid by a set date, determining the length of the term. From here, you now need to decide on how the interest is handled until the agreement matures and is fully repaid. To do that, you have 3 options to choose from which are: Pay Monthly, Rolled-Up Interest, and Retained Interest. Pay Monthly: At the end of each month, you’re required to make interest payments to the lender. Rolled-Up Interest: The total amount of interest incurred is combined with the Principal (capital borrowed) as a single repayment and is made payable when the agreement reaches maturity. Retained Interest: This allows you to borrow the interest that you’ll incur for an agreed number of months. However, this is retained by the lender and is also subject to interest. This is used to offer you a safety net as you make monthly interest payments to the lender. Plus, if you haven’t used up all of the interest that’s been retained, or you’ve managed to resolve the agreement early, the lender may reimburse a portion of these funds to your business. How can I support a major land purchase? However, if you’re an established company looking to purchase a substantial amount of land for a major project (e.g. to build a large factory or airport), another way of achieving your goal could be through Mezzanine Finance. Mezzanine Finance is a cross between Debt Financing and Equity Financing and is highly customisable. As such, the agreement you could receive will be unique and is subject to your ability to negotiate a suitable arrangement with the lender(s). A great way of borrowing a large amount of capital, the amount of funding that you receive from a Mezzanine lender is subject to a given project which, in this case, is the desired land’s total purchase price. Plus, although this type of lending usually carries a high rate of interest, Mezzanine Finance agreements are often established on 5 or 6-year terms. However, this depends on how successful your negotiation strategy is, so can be longer or shorter. In addition, you’ll need to decide a suitable repayment strategy which, again, is subject to negotiation. Although there are number ways a Mezzanine Finance solution could be resolved, two of the most common repayment methods are Fixed Monthly Repayments and Rolled-Up Repayment. Fixed Monthly Repayments: Repay a set amount of capital each month to the lender(s), plus interest. Rolled-Up Repayment: The Principal (capital borrowed) is combined with the interest incurred and repaid in a single repayment when the agreement matures. Need help purchasing land for your business? Purchasing land in the UK can be a great way to invest in the future of your business. However, the price tag that often comes attached can often prove a formidable obstacle to overcome, causing many business owner to delay or abandon their goals. Fortunately, there are a number of ways that you can gain the support you need to succeed. All you need to do is source an agreement that’s most suitable for you. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the entire application process to give you the best chance of being successful. So if you’re looking to purchase land for your business, apply for Land Purchase Finance today or find out more with Rangewell.
Construction Project Finance
Despite current challenges and thanks to an ever-growing demand for housing and commercial workspaces, the UK construction industry is keeping its head above water. That means that there still many opportunities to take advantage of, providing you have the means to do so. Yet, whether you’re looking to take on a new contract or complete an existing project, one way of gaining the upper hand is by applying for Construction Projection Finance. Offering you a variety of ways in which to raise the capital your business requires, Construction Project Finance is an invaluable tool enabling you to prepare for new contracts and support the progression of an outstanding project. So if your construction business needs access to additional capital, here’s what you need to know about Construction Project Finance. What can Construction Project Finance be used for? For many construction firms, construction project finance offers your business an essential pillar of support. It enables you to raise capital for a wide range of purposes to support any construction project - whether you’re looking to prepare for a new contract or support an existing project - and could even be used to hire contractors, support wages, purchase supplies, acquire additional equipment or even release equity held within any unpaid business-to-business (B2B) invoice. Looking to accept new contracts or support an ongoing project? Need access to additional capital? Apply for Construction Project Finance or learn more about how your business could benefit What do I need to qualify for Construction Project Finance? Another reason why so many construction firms request the support of Construction Project Finance is that it’s suitable for a wide variety of purposes, even if you possess an adverse credit rating. However, you need to be aware that the application process does vary depending on the type of finance product you’re considering. Nevertheless, in order to qualify for Construction Project Finance the three areas you need to take into account include: Credit Rating - Lenders will always carry out the necessary checks, including a review of your credit profile. So although it may not be used against you, they will usually request permission to assess your credit profile, incorporating into their checks whether you have any past or outstanding CCJs accelerated payment notices (APNs), outstanding debt (e.g. credit card debt) and history of resolving debt on time. As such, if there are any issues, you need to be aware that it may affect how much interest you’re charged. Security - Depending on whether the agreement is Secured or Unsecured, you may need to present lenders with collateral in the form of unencumbered assets such as equipment, machinery or vehicles. Plus, depending on the product, you could even use the capital held within unpaid business-to-business (B2B) invoices as collateral. Documentation - In addition, you also need to consider what you’ll need to present with your application, which varies depending on the product in question. So although this should be outlined in the documents they’ll present in response to your enquiry, they’ll often request anything from proof of your identity, past and recent bank statement, profit and loss statements, cash flow forecasts, business-to-business invoices to collateral documentation. What Construction Project Finance solutions can I apply for? Finally, another reason for why Construction Projection Finance is so popular with the construction sector is that it provides access to a number of business finance solutions, granting you a variety of way to raise the capital you need. So depending on how your business operates and how you intend to raise the necessary fund to achieve your goals, you could apply for Overdraft Replacement, Invoice Finance or Asset Refinance. Overdraft Replacement Overdraft Replacement is an invaluable tool for many construction firms who are working an existing construction project but need additional funds to support each stage in its progression. As such, Overdraft Replacement could be used to replenish construction supplies, repair/replace damaged equipment, pay staff wages or even hire contractors. It works by granting your business a Line-of-Credit, providing instant access to an allowance based upon your past income. In addition, you’re under no obligation to withdraw any of the funds that are available. But should you choose to do so, anything that you’ve taken will need to be fully repaid within 30 - 90 days (depending on the agreement) and charged interest. Once repaid, you’ll instantly regain access to allowance and will be able to withdraw and repay funds on a revolving cycle - much like a credit card facility. Invoice Finance On the other hand, if you’re looking to support an existing project or prepare for a new contract, you could raise the capital you need by instead applying for Invoice. This involves releasing up to 90% of the capital contained within any unpaid business-to-business (B2B) invoice worth in excess of £5,000. However, there are two types of Invoice Finance products available that you need to be aware of - Factoring and Discounting. Factoring: In order to qualify, your construction firm must be able to generate an annual turnover of at least £25,000, whilst also maintaining up-to-date business ledgers and demonstrate effective credit control procedures. But, it’s worth noting that Factoring does give you the option allowing lenders to pursue the debtor on your behalf, saving you time. Once the debtor (customer) has fully repaid what they owe in the invoice, the lender will release a balance (e.g. the remaining 10%, minus costs and fees). Plus, some lenders may also offer you Bad Debt Protection as standard, safeguarding your business in the event the debtor (customer) doesn’t resolve what they owe. Discounting: On the other hand, Discounting requires your construction firm to possess an annual turnover of at least £100,000, whilst also maintain up-to-date ledgers and reliable credit control procedures. But instead of the debtor paying your firm, they’ll, instead, pay into a lender-controlled facility. When the invoice has been fully repaid, the lender will then release a balance to your business (e.g. the remaining 10%, minus costs and fees). Asset Refinance Finally, if your construction firm owns any unencumbered assets (equipment, machinery or vehicles) that aren’t fixed into the structure of your premises, applying for Asset Refinance could enable you to release up to 100% of the equity they contain in order to generate a lump sum. This lump sum is also not subject to any usage restrictions or credit limits other than what the lender is willing, or able, to provide. In addition, this finance solution also offers terms lasting up to 5 years, during which you're required to make Fixed Monthly Repayments, plus interest. Although this is a useful way of generating funds, you need to be aware that Asset Refinance is a form of secured asset-based lending. Therefore, if your business falls behind in the repayment scheme and defaults, the lender will gain the right to repossess these assets. Need help supporting your construction firm? For any construction firm to succeed, being able to secure new contracts and complete key projects is essential. However, the construction sector isn’t an easy environment and you could run into any number of issues that could cause you to go over budget. But rather than dip into your own savings, you could raise the capital your construction firm needs by applying for Construction Project Finance. All you need to do is choose a suitable business finance solution that will offer you all the support that’s required. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you are looking to gain access to additional funds and support key construction projects, apply for Construction Project Finance today or find out more with Rangewell.
How to grow a print company
Even though businesses may be going digital, the fact remains that they still need print - for flyers, reports and more. But if you are in the print industry, you are already aware that the rules are changing and your customers are changing with them - and that the traditional market for print may even be shrinking. However, you can’t afford for your business to do the same. In fact, if your print business is to have a future, it needs to grow. For a printing business to enjoy significant growth in the coming years, you need to, not just to find more customers for what you do, but you need to evolve your business and bring in new services and products to meet your customers’ changing demands and needs. New technologies Fortunately, new and emerging technologies can mean a real rebirth of the printing industry and a major change in your role of a print shop owner. The print businesses that are most successful today are those that realise they need to keep an eye on the technological developments. These new technologies - such as the latest digital print equipment - mean both changing the way you do business and the services you offer. There may always be a need for offset, for the very highest quality of work and long print runs - but even its supremacy in those areas may no longer be certain. Digital printing needs no printing plates and allows digital print jobs to be set up and run directly from a laptop with a suitable graphics design program. It means a very quick turnaround and requires no plates or typesetting. Such flexibility gives businesses the ability to serve customers who need short-run production and quick turnaround - you can literally take a brief in the morning, call up templates that you have used before and deliver the clients order in the afternoon. But the benefits don’t end there. Digital printing also offers such innovations as variable-data printing, which enables you to change the content during a print run. This is ideal for customers who need personalised products, such as custom promo materials with unique names, addresses and coupon codes on individual pieces. Personalised printing is a new concept that can revolutionise marketing - and your business. Looking to grow your print business, or explore new opportunities for increasing profitability? Find out what funding solutions are available for your sector or apply for finance today How your business can change The potential of digital print means that printing businesses can evolve into graphic communications centres. Instead of simply producing print to order, your business can become a full-spectrum marketing service provider. It will mean bringing in some extra skill sets. You may already offer new services, and expect to print on a wide range of substrates, from plastics and cloth to metals. Knowing how to harness the latest in digital personalisation will increase what you offer your customers even further. You may need to extend your design skills into the digital realm and offer web design and social media to provide an all-round marketing service, with print being just one of the services that you can offer. You may also need to consider : Adding full mailing service capability - Direct mail may be making a comeback and being able to mail out complete, personalised mailings makes more efficient use of your print equipment Developing an online ordering system - Allowing customers to place their print orders online can mean increasing your throughput, and web-to-print also gives customers an important extra reason not just to use your services but to become repeat users, who come to rely on you for all their marketing communication needs Creating an online marketing capacity - Emails have become a staple of marketing campaigns so being able to offer email as an extension to your physical direct mail ensures clients need not look elsewhere for the services they need, and, with the right expertise within your team, online design may be simply an extension of your digital design for print expertise Providing large format capabilities - Being able to deliver signs, banners, posters and even vehicle sides will provide the potential for profit and, again, ensure that clients will have no need to look elsewhere Becoming a one-stop-shop for marketing - Being able to offer the full spectrum of marketing will mean calling on specialists familiar with everything from best-practices in copywriting, strategy, data and more, but it will ensure that your business is kept busy - and profitable. Make a Business Plan Like anything else to do with business, planning is essential. You probably had a detailed business plan when you first set up your business but now you need another to work out how your business can move forward. Look at your current customers - what can you offer them now which will answer their marketing needs? Will some simply want to discuss new types of printing - or are there some who will see the advantages of turning to you for all their marketing needs? Work out what it will cost to bring in the additional equipment you will need - and decide how you will furnish the additional expertise. Freelance consultants may be available - but you may want to look at getting in a full-time marketing expert. You will also need to look at your own marketing. You must have a website that showcases your services - and probably one which provides an easy and effective interface for print-on-demand services. For this, you will need to budget accordingly. What are the costs you will need to deal with? To grow your business in the ways discussed, you are likely to need new equipment. As an experienced manager with a print business, you will already know the advantages of Asset Finance to spread the cost of the equipment you need. Leasing may be your approach of choice - by bringing in the latest equipment with no upfront cost, you could give your business an important competitive advantage over competitors who are handicapped by legacy equipment. But the costs of moving your business forward do not end there. Just as it takes time to build up a list of clients in need of regular print work, you will need to spend time finding clients who will want rather more from you. In business, time is money - you may need to find Working Finance to help keep cash flow positive while you are taking your business further. You may also need funding to pay for the new people you bring in with the specialist skills you need. Your business plan will be an important asset when it comes to approaching lenders for the funding to meet all these needs. But equally important will be a funding expert who can help you help you find the most appropriate lenders and take you through each step to arrange the finance you want. The new economic realities of the print industry may be too complex for many lenders, and it is important to approach lenders with an enlightened approach and who can see the potential of moving away from the traditional core business models. A call to Rangewell can help. We work with all types of business, and we understand the challenges of taking a print business to the next level - and the solutions to them.
5 reasons to grow your business with VC Funding Alternatives
Are you eager to take to charge over your career? Although starting your own business can be an exciting next step with a huge amount of potential, it can also have its fair share of frustration and unique challenges. And one of the biggest obstacles standing in the way of a new business is the matter of funding - the lifeblood of any successful venture. In order to overcome this issue, some aspiring entrepreneurs decide to look at the Venture Capital option. Although venture capital can be a useful way of getting the ball moving, it also often means giving away equity, and possibly losing some control over, your business. However, if you’d rather avoid this then you may want to consider applying for a VC Funding Alternative instead. So, if you’re looking for suitable alternative to venture capital, here are just some of the benefits that applying for a VC Funding Alternative has to offer, including: No loss of control Access to a wide range of business finance solutions Access to a lump sum Suitable for a variety of purposes Flexible criteria Will I remain in control of my business? Yes. If you choose to apply for a VC Funding Alternative, you could receive the funds that you require to achieve your goals without surrendering shares in your business or having to answer to any 3rd party investors. That’s because, with this form of funding, lenders only seek to earn on a return on their investment by charging your business interest. Therefore, once the agreement matures and has been fully repaid, your business’ involvement with the concerned lender comes to an end. However, if you’ve managed to foster a strong relationship with that particular lender during that time, you could take advantage of this in order to gain favourable finance agreements with them in the future. Want to grow and expand your business? Thought about applying for Venture Capital, but don’t want to lose shares in your business? Apply for a VC Funding Alternative or learn more about how your business could benefit What VC Funding Alternatives are available? VC Funding Alternatives include a wide range of business finance products that all function in different ways to provide your business with the support it needs to grow, operate and succeed. As such, If you want to remain in control of which direction your business is heading in, you could apply for anything from Secured and Unsecured Business Loans, Mezzanine Finance, Commercial Mortgages, Merchant Cash Advance, Asset Finance to Invoice Finance. However, with so many products to choose from, taking the time to understand all of them before submitting an application would be a wise move - doing so could save your business money in the long-run, whilst also preventing you from wasting valuable time with an inappropriate product and receiving a rejection as a result. How much money can I borrow? This depends on your chosen product. Whilst some, such as Business Loans, impose a set borrowing limit, others don't, meaning that there’s no limit to how much money your business could borrow other than what each lender is willing, or able, to lend. However, before submitting an application, you need to consider how much money you need to achieve your goals. Although it may be tempting to request a large lump sum, borrowing more than what you need would lead to your business paying more in interest over the course of the agreement. What can VC Funding Alternatives be used for? VC Funding Alternatives can be used for a wide variety of purposes. Although some products may only be used for specific purposes, there are many other solutions available that impose little or no usage restrictions. Therefore, applying for a VC Funding Alternative could enable you to acquire new equipment, smooth out uneven cashflow, receive a cash injection, carry out refurbishment, purchase property, release equity, cover unexpected expenses or even gain additional support during emergencies. So, no matter what your business needs to succeed and move forward, applying a VC Funding Alternative could provide you with the support you need to do so in total confidence. How do I qualify for a VC Funding Alternative? Because VC Funding Alternatives covers a wide range of business finance solutions, you need to take into account that the criteria for each product can vary significantly. Although criteria requirements should be specified in the documents provided by the lenders, the 3 key areas you need to consider are Collateral, Personal and Business Credit Profile and Documentation. Collateral: When applying for a VC Funding Alternative, you need to decide whether you want to use a secured or unsecured business finance solution. Although secured products usually carry lower interest rates (compared to unsecured solutions), this also means offering collateral in the form of unencumbered assets (equipment, machinery, vehicles or property). This means that if your business defaults on the agreement, the lender will repossess and remove them from your premises. Meanwhile, unsecured finance products do not require you to provide collateral but can be more challenging to qualify for due to the increased risk to the lender. Credit Profile: Although it won’t always be used to against you, lenders will usually request permission to review both your personal and business credit profiles. This provides lenders with an in-depth understanding of the potential risk involved in lending to your business and how well it's performing financially, helping them to decide how much interest they should charge. When assessing your credit profile, lenders will incorporate into their search whether you have: past or outstanding CCJs, Accelerated Payment Notices, arrears, existing unpaid debt and your history of resolving debt on time. So although possessing an adverse credit score may not always be used against you, it is likely to affect how much interest you’re charged throughout the agreement. Documentation: When applying for any VC Funding Alternative, you’ll be asked to provide lenders with a variety of vital documents, depending on your chosen product. As well as providing proof of your identity, you may need to submit anything from your recent/past bank statements, sales reports, Profit & Loss statements, collateral documentation, and unpaid invoices to your sector’s Standard Industrial Classification (SIC) code. This enables lenders to gain a greater understanding of how you operate and decide how much capital they will lend to your business. However, these aren’t the only factors that can affect your application. So, in order to maximise your chances of getting approved for a VC Funding Alternative, speaking with a qualified business finance professional could prove invaluable. Could a VC Funding Alternative provide you with the support your business needs to succeed? Whilst forming a comprehensive business plan and surrounding yourself with a competent team is important, you also need to ensure that you have access to the funding your business requires. However, at such an early stage in your development, obtaining these funds can be frustrating. Yet without them, achieving strong growth, running day-to-day operations and delivering your goods and services would prove challenging. Although Venture Capital can be useful for some start-ups, it’s highly sought after and requires you to hand over shares in your business. Fortunately, there is another way that you provide your business with the funds it needs to succeed and achieve a sustainable future. So if you want to drive your business to next level, but need help raising the necessary capital to do, apply for a VC Funding Alternative today or find out more with Rangewell.