What does Capital mean in business?
In order to take your business from A to B there’s a vital resource that you simply can’t do without - capital. The lifeblood of every UK business, possessing it in sufficient quantities is essential for your ability to support growth, maintain reliable supply chains, run day-to-day operations and remain sustainable for the long-term. However, capital isn’t something that is easy to acquire, which has lead to the collapse of many high profile brands in recent years. Nevertheless, raising capital for your business is a challenge you must rise to if you’re to succeed. So, what does capital mean in business and how can it be obtained? What is Capital? Intrinsic to the survival of any business, when we think of capital, the notion that enters our minds is that of cash. However, the term capital also describes a variety of other financial assets such as equity and debt. This means that the term capital could extend to assets like company vehicles, account holdings, stocks and shares, patents, software, machinery or anything else with a monetary worth. But, it’s also worth noting that the term does exclude raw materials which may be used in manufacturing. So, what does this actually mean for both you and your business? Looking for a way to raise additional capital for your business? Wish to avoid to giving away equity to 3rd parties? Apply for Alternative Finance or learn more about how your business could benefit. How can I acquire Capital? Because capital can be used to describe so many different types of financial assets it means that there are a variety of ways in which it could be acquired. Yet if you’re a start-up or small business, attempting to seize upon the benefits that capital has to offer can still feel like trying to climb a mountain. But if you know where to look, the potential to achieve your goals is within the reach of your business. So what are the different types of capital of you could acquire? What is Venture Capital in business? Venture Capital is, essentially, money which has been offered to you by a Venture Capitalist in order to support your business and any plans you may have for the future. Generally non-repayable and subject to the investor’s willingness to invest, there’s no limit to how much capital you might receive taking this route. But anything that you do receive will come at the cost of equity (shares) within you business. What is Share Capital in business? In this instance, Share Capital describes the funds that have been invested in your business by investors who, as a result, now possess a shareholding. However, Share Capital can be used to support any aspect of your business and, being based on investor confidence, there’s no limited to how much you may receive. What is Debt Capital in business? On the other hand, Debt Capital describes the funds that you may receive from applying for any type of business finance agreement such as a Secured Business Loan. If you’re looking to acquire Debt Capital, it worth noting that there is a wide range of business finance products on offer through the UK lending industry, including Alternative Finance. What is Equity Capital in business? Meanwhile, Equity Capital describes the equity worth in your business' tangible and financial assets, such as unencumbered equipment, machinery, vehicles, property or even unpaid business-to-business (B2B) invoices. Such capital can be released back into your business through the sale of assets or by using an Asset Refinance solution. Looking to acquire to additional capital for your business? Despite the importance of raising capital, it’s an area that all too many business owners struggle with. But when you consider the many forms that capital can come in you’ll realise that there are plenty of ways in which this obstacle can be overcome. It’s just a matter of finding the pathway that’s suitable for your business’ needs. Yet, as your business develops, the demand for capital will only increase. Fortunately, that’s where the Alternative Finance sector could help. So, rather than relying on your own funds or giving away shares, you could, instead, support your goals by applying for business finance, which is where we can help. At Rangewell, we’re an Access to Finance specialist working with over 350 lenders to offer you an overview of more than 23,000 business finance products quickly and easily. Our services are free to use for business owners and their advisors and we’ll also guide you through the application process right through to draw down. So if you’re looking for a way to raise capital for your business, apply for Alternative Finance today or find out more with Rangewell.
Cheap business loans: what you need to know
Looking for a cheap business loan? Business Loans are a great way of borrowing capital on either a short- or long-term basis and are suitable for a wide range of purposes. But the question of whether you can get a cheap business loan depends entirely on your own individual financial situation and where you choose to apply. Yet, there are steps you can take to make your application more enticing to lenders. So, if you’re in need of additional capital and are searching Google for cheap business loans, here’s what you need to know. What’s your current financial situation? When looking for the cheapest loan options for your business, the first thing you should do is review your current financial situation, which can be done by checking your credit profile. It is especially important to make sure there are no errors on your credit profile as lenders will always request permission to review it, incorporating into their checks factors such as whether you have recent and/or past CCJs, Accelerated Payment Notices, existing finance agreements (e.g. credit card debts) and your history of paying off debt on time. If there are any issues, be aware that not only will they affect your chances of getting approved, they’ll also determine the amount of interest your business is charged. So before placing an application, you should always generate a credit report with one of the UK’s leading credit agencies (Equifax, Experian and TransUnion). Doing so will give you the opportunity to spot any problems which may be affecting your credit rating and, if possible, resolve them. Just of some the ways in which can improve your score are: consistently pay bills on time resolve outstanding CCJs reduce your credit utilisation ratio increase your credit limit but also reduce credit card spending dispute any errors that you find (providing sufficient proof to the credit agency responsible). Is your business in need of additional capital? Looking for a cheap business loan? Apply for a Business Loan today or learn more about how your business could benefit. Are you providing collateral? Another key aspect determining the overall cost of the agreement is whether you’re applying for a Secured or Unsecured Business Loan. Secured Business Loans allow your business to borrow anything from £5,000 - £1,000,000, but require you to present unencumbered assets (equipment, machinery, vehicles or property) as collateral as part of the agreement. Although this helps to raise lender confidence and, perhaps, offer a more favourable interest rate, doing so does involve putting the asset at risk of being repossessed in the event your business defaults on its payments. On the other hand, if you don’t possess any assets or prefer to not put them at risk, you could, instead, apply for an Unsecured Business Loan which may allow you to borrow between £5,000 - £250,000. However, you’ll be charged more interest compared with a Secured Business Loan and will be subject to stricter application requirements on account of the increased risk to the lender, should they approve your request. As such you need to think carefully about what you want from the agreement. Do you want a cheaper interest rate, or would you rather your assets weren’t put at risk? Have you compared business loan providers? In addition to interest, you also need to consider what service fees may be applied. This differs from lender to lender, so you should read the documents provided by each lender you’re considering. Nevertheless, some of the charges you may encounter include set up fees, origination fees (e.g. administration), underwriting fees, closing costs and legal costs. But by shopping around, you could seek to reduce or even remove some of these costs. So although you may have a preference for a particular lender, looking at what other lenders may be charging for a similar agreement could give you more leverage during the negotiation phase. Thinking about applying for a cheap Business Loan? Whether your goal is to support growth or maintain day-to-day operations, the obstacle standing in your way might be a lack of capital. But by applying for a Business Loan, you could raise the funds that you need to achieve these goals. However, your next concern might be the cost of borrowing, which is understandable. Fortunately, the Alternative Finance industry is offering you access to more business finance solutions than ever before, including products you may not even be aware of. All you need to do is figure out where to find them, which is where we can help. At Rangewell, we’re an Access to Finance specialist and have mapped over 400 lenders to offer you a comprehensive 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 whether you're looking for specific, secured business loans to full finance for vineyards, and every sector in between, apply for funding today or find out more with Rangewell.
Borrowing money: the advantages and disadvantages
As a business owner with big ambitions, the idea of pursuing your own success and reaping the rewards is often very exciting. But, as well as passion and commitment, you also need access to enough capital in order to turn your dreams into a reality. However, this is often a major stumbling block for many developing businesses, with one of the biggest challenges being having to decide between borrowing money or using your own savings. Although both sides of the argument have their merits, it’s a topic that needs to be considered very carefully. So to help make a decision that benefits the whole of your business, here are the advantages and disadvantages of borrowing money. Advantages of borrowing money Whether you’re starting up or already established, growing and supporting your business will, no doubt, require a capital investment to achieve. Naturally, you may have to put up some of the funds during the initial stages, but supporting your business by yourself in the long-term may not be sustainable. You may even decide to ask friends and family with the aim of paying them back later but if you can’t, this will only lead to strained relationships and sleepless nights. Instead, whether you’re looking to boost growth, maintain day-to-day operations, obtain new equipment, smooth and support uneven cashflow, establish a reliable supply chain or fund existing projects, exploring the advantages of borrowing money might be a wise decision. Borrowing money allows you to support aspects of your business which you may not be able to afford. Yet even if you do have the good fortune of possessing sufficient capital, parting with your savings could cause issues later in your business’ development and limit your ability to build a reputable credit rating. So, rather than purchasing goods and services upfront, exploring the advantages of borrowing money could enable you to spread out or delay the expense to a later date, making your goals more affordable in the long run. Looking to borrow money for your business? Need help sourcing a suitable finance arrangement? Apply for an Alternative Business Finance agreement or learn more about how your business could benefit. Disadvantages of borrowing money Although there are many advantages to borrowing money for your business, there are other aspects to factor in as well. Firstly, in spite of increased affordability, due to interest, service fees and legal costs, borrowing money will ultimately cost you more than if you were to support your goals by yourself. However, you may be able to reclaim interest on a quarterly basis, which is a topic that you should discuss with your accountant before placing an application. In addition, although borrowing money can either spread out or delay the expense, you’ll need to keep up-to-date with the relevant repayment scheme (depending on your chosen product). This could limit any spare cashflow you have available, making it difficult to stay within your budget or provide funds to other areas of your business. Plus, if the agreement is secured, you’ll need to present security in the form of unencumbered assets (equipment, machinery, vehicles or property), which, in turn, puts them at risk of repossession should your business default. Plus, even if the agreement is unsecured, defaulting will affect your credit rating. Alternative Finance If you do decide to apply for business finance, sourcing a suitable agreement presents yet another challenge to overcome. Your first thought may be to explore what funding opportunities your bank has to offer, but with many UK financial institutions preferring big business, borrowing money through the traditional route could prove challenging, especially if you possess a limited trading history, adverse credit, an unproven business model or insufficient assets. Fortunately, the Alternative Finance Industry is opening the doors to more and more business finance solution than ever before, regardless of your current financial situation. However, with so many solutions to choose from, sourcing a suitable finance agreement becomes an obstacle in itself, which is where we can help. Need help sourcing a suitable business finance agreement? Although borrowing money for your business has many advantages, choosing a suitable finance arrangement isn’t a simple undertaking. Yet without having access to sufficient amounts of money at your disposal, achieving your goals will, ultimately, be an uphill struggle. However, the Alternative Finance industry is enabling businesses of all shapes and sizes to reach their full potential. The challenge is sourcing a suitable finance agreement with a lender you can trust, which is where speaking with a qualified business finance professional could prove invaluable. 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’re looking to raise capital for your business, apply for an Alternative Business Finance agreement today or find out more with Rangewell.
5 reasons to grow your business with Alternative Finance
Although external funding is a major aspect of building and maintaining your business, the fact remains that there are many UK SMEs who are still unaware of the Alternative Finance Industry and what benefits it has to offer. This means that, without knowing, you could be cutting yourself off from the funds you need to complete key growth projects or overcome any obstacles that may be standing in your way. If the traditional route has proven unsuccessful or you’re looking to explore what other finance solutions might be available when making your decision, the Alternative Finance Industry might be able to help. Offering an essential lifeline to both SMEs and established businesses, some of the many benefits that Alternative Finance has to offer include: Access to a wide range of finance products Access to large lump sums and advances Suitability for a wide range of purposes Available for a wide range of financial situations Faster decision speeds What Alternative Finances solutions can I apply for? With the Alternative Finance Industry at your disposal, you can still gain access to the same great products as you would with your local high street bank, plus a variety of other finance solutions that they might not cover. This means a higher chance of sourcing an agreement that matches your business’ needs and how you operate more closely. By choosing to explore the Alternative Finance Industry before or whilst making enquiries with your bank, you could apply for anything from Secured and Unsecured Business Loans, Invoice Finance, Bridging Loans, Commercial Mortgages, Overdraft Replacement, Asset Finance and Inventory Finance to Merchant Cash Advance and Refinance. So if you’re in need of external funding, why not maximise your overview of the business lending landscape by exploring what the Alternative Finance Industry has to offer? Have a growth project you want to start work on? Need help raising the necessary funds to do so? Apply for an Alternative Finance agreement or learn more about how your business could benefit. How much money can I borrow? Although some finance solutions, such as secured business loans, only offer up to a certain amount of funding (£5,000 - £1,000,000), other products aren’t subject to such restrictions. The reason for this lies in how each individual product functions when it comes to deciding how much funding to provide and the purpose of the agreement. This means that collectively, there’s no set limit to what your business can borrow with the Alternative Finance Industry. However, lenders may also impose their own restrictions based on how much they’re willing, or able, to lend which is why comparing the entire business lending landscape is so crucial. What can Alternative Finance be used for? Alternative Finance can be used to achieve any number of projects and goals, whilst also providing you with the means to overcome any obstacles that stand in your way. Although some products are suitable only for specific purposes, there are plenty of business finance solutions available that carry little or no usage restrictions. What this means is that funds that you may acquire could be used to benefit virtually any aspect or area of your business. So if you’re looking to obtain new equipment, support uneven cash flow, purchase property, carry out refurbishments or gain access to emergency funding, for example, the Alternative Finance Industry could be what your business needs to succeed. What do I need to qualify for Alternative Finance? Qualifying criteria depends entirely upon the type of finance you’re looking to apply for. Although Secured Finance solutions generally inspire more confidence from lenders and may offer lower interest rates, this does mean presenting unencumbered assets (equipment, machinery, vehicles or property) as collateral. This means that if you fall behind in the repayments, the lender will gain the right to repossess and remove those assets from you. Meanwhile, Unsecured products do not require you to offer lenders security. Although this can prove a useful alternative if you lack sufficient assets or are unwilling to put them at risk, unsecured agreements can be more difficult to acquire and usually carry higher interest rates. Another aspect to consider before applying is your current financial situation. As well as making sure that you’re able to provide the necessary documentation, you’ll usually be asked to give a lender access to your credit profile. This allows them to form a stronger understanding of your business, the risks that are involved and how you operate. Although adverse credit may not always lead to a rejection it will, however, affect how much interest you’re charged throughout the agreement. Therefore, the weaker your credit score, the more interest you’ll be required to pay. If you’re worried about how your credit profile may affect your application, or you need access to a larger lump sum, you could consider offering lenders a Personal Guarantee. How soon could an agreement be arranged? This depends on the type of finance solution you’re thinking of applying for and the complexity of your request. That said, you could acquire an agreement in as little as 48 hours with the agreed funds arriving in your business account soon after. In order to make sure that you receive the funds you require, and without delay, make sure you have all of the necessary documentation to support your application ready beforehand. This should all be outlined in the paperwork provided by the lender and will help minimise the need for them to chase you up. Need help growing your business? Acquiring the funds you need to achieve your short and long-term goals can be a headache for any business owner. Nevertheless, exploring what external funding opportunities are available is a vital requirement if you’re to grow and remain sustainable. This is where the Alternative Finance Industry can make a big difference. By choosing to explore this industry you could gain access to a wider range of business finance solutions from an ever-increasing number of business lenders. However, although this is great news for any business, this also makes sourcing an appropriate and cost-effective agreement on your own much harder. This is where our services and expertise can help. At Rangewell, we’re an Access to Finance specialist working with over 300 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. We’re with you every step of the way. So if you’re looking to grow your business, apply for Alternative Finance today or find out more with Rangewell.
How to find a broker for Bank Loan Alternatives
Running your own business is a tough and demanding responsibility, but if you’re willing to put the work in there’s no reason why it can’t turn into a success. However, although both a detailed business plan and dedicated team are both key ingredients, the stumbling block you may need to overcome is funding. Naturally, your first thought might be to approach your high street bank. Yet, despite banks still playing a vital role in financing British business, meeting the necessary criteria has become challenging, especially if you’re an SME. But, there is another route that you can take. If you’re determined to make your vision a reality, you could apply for a Bank Loan Alternative. However, with so many different business finance solutions to choose from, seeking the services of a qualified broker can prove invaluable. So if you need helping sourcing the most appropriate business finance solution, these are just some of the questions you need to ask when choosing a broker for a Bank Loan Alternative: What sectors do they work with? How many products do they cover? How many lenders are they associated with? How close is their relationship? How do their services stand with their past clients? How much experience do they have in my sector? When deciding on which broker to work with, you need to be satisfied that you’re using someone who has sufficient knowledge and experience in your sector. They should already be aware of what challenges you can expect to face and the complexities that are involved in how your sector operates. Plus, their experience should also put them in a strong position to identify which lenders to approach and form a successful presentation strategy, helping to give you the edge you need, along with a competitive rate. Need help funding an essential growth project? Or are you looking for assistance with your operating costs? Apply for a Bank Loan Alternative or learn more about how your business could benefit. How many products do they work with? Your chosen lender should be able to work with as many products as possible for you to get the right deal. In some cases, brokers may only work with a single type of finance. However, only by being made aware of what business finance solutions are available can you have confidence that you’re applying for a solution that takes into account how your business operates. So if you’re looking to source an appropriate alternative to a bank loan, the products that you should be able to access may include Secured and Unsecured business loans, Invoice Financing, Inventory Financing and Merchant Cash Advance. Therefore, your chosen broker should be able to reflect this diversity in the services they’re offering to your business. How many lenders can they source an agreement from? In addition, your chosen Bank Loan Alternatives broker should be able to work with as many lenders as possible. This is vital to allow you to compare similar products from across the business lending community, helping you to source an appropriate agreement at a competitive rate. Therefore, choosing a broker who works with a range of lenders could be instrumental in saving your business money in the long run. How close are their lender relationships? Whenever you work with a broker, you need to have confidence that the recommendations they’re presenting are in your business’ best interest. Impartiality is of huge importance as it means that you will see the most appropriate deal for your business and not the broker’s business. However, this isn’t always the case. Sometimes the broker may have an undisclosed agreement that sees them benefitting each time they send a client to a particular group of lenders. It could even be the case that the broker owns that particular lender. But whatever the reason may be, if you suspect such an arrangement is in place, it’s a breach of your trust. As such, you need to consider carefully where you stand in regards to the further use of their services. How satisfied are their past clients? Finally, you also need to make sure that the broker is someone your business can form a strong relationship with. This can be achieved by assessing how their past clients rate their services by reviewing case studies, online reviews and community forums. As well as assessing the positives of their services, also take into account the negatives. If you see that one customer had a bad experience try to understand what lead to the situation and if it could have been avoided. However, if you notice a strong pattern of dissatisfaction emerging it may indicate that there are issues regarding how they operate and their work ethic. If this is the case, consider exploring what other Bank Loan Alternatives brokers are available. Need help searching for an appropriate Bank Loan Alternative? Searching for an appropriate finance solution for your business can be daunting. With so many different business finance solution to choose from, how can you be certain that you wouldn’t have found a more favourable deal elsewhere? Although this question worries many business owners, it doesn’t need to be that way for you. If you’re looking for an appropriate Bank Loan Alternative for your business, the solution could be within your reach. All you need to know is where to look. Fortunately, we’ve already done the hard work for you. At Rangewell, we’re an Access to Finance specialist that works with over 300 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 through the application process. So if you’re looking for funding opportunities outside your local high street bank, apply for a Bank Loan Alternative today or find out more with Rangewell.
When is the best time to think about Commercial Loans?
Is your business in need of some extra cash, or do you a have a project that needs additional support? Although it’s tempting to simply go and dip into your own savings, doing so could result in any number of issues for your business. So why not explore another route? Providing you with the means to borrow the money that you need, Commercial Loans are an important driving force when it comes to stimulating growth, investment and sustainability. An umbrella term describing a wide variety of finance products designed exclusively for businesses, Commercial Loans enable you to pursue your goals and aspirations in total confidence. However, are you aware of when should be thinking about applying for a Commercial Loan? Three of the most common reasons for considering a Commercial Loan may involve: Business projects Cash flow Establish business credit Can I use a Commercial Loan for business projects? Yes. With a Commercial Loan you could gain access to a range of products allowing to you to do anything, including purchasing property, acquiring equipment, completing renovations, refurbishments, or updating IT to developing new products and services. Just some of the products that are available to help you include Secured Loans, Unsecured Loans, Bridging Loans, Development Loans, and Commercial Mortgages to name a few. So, no matter your goal or which direction you intend to take, Commercial Loans can help you grow and achieve ever-greater success. Need a cash injection? Got a project that needs financing? Apply for a Commercial Loan or find out more about how your business could benefit! Can I support my cash flow with a Commercial Loan? Absolutely. Whether you’re anticipating a seasonal downturn in sales or if your working capital has taken a turn for the worst, applying for a Commercial Loan could help support your business’ finances during this awkward time and even engage in projects to resolve the situation. By utilising finance products, or packages such as Asset Finance, Working Capital Finance, Term Loans or Revolving Credit Facilities, you can stave off the adverse effects that could have resulted and come out on top. So if you’re having issues with your business’ finances, don’t just put up with it. Give your business the support it needs through applying for a Commercial Loan. Can I use a Commercial Loan to gain a cash injection? Of course. If your business needs extra cash after completing a prior finance agreement, covering a large expense or in preparation for an upcoming business project, there are plenty of ways that you could receive a cash injection for your business. Just some of the many products that could help you in this pursuit include the likes of Term Loans or Asset Refinance. So by considering a Commercial Loan for your business, accessing the cash you need could easier than you may have initially thought. Thinking about applying for a Commercial Loan? In order for any business to grow from strength to strength, ensuring access to sufficient funds at a moment’s notice is crucial, whether for additional support, acquiring new equipment or even redeveloping your property portfolio. The question, however, is how? Although seeking a Commercial Loan is certainly a step set in the right direction, the issue is that it covers a wide range of business finance packages and products. You need to delve deeper and assess what aspects of your business needs financing, which products are compatible with your goals and how much your business can safely afford. Although it can be daunting having to make a choice with so many different finance solutions available at any one time, there’s no need to navigate it alone. Help and support are at hand. If you’re looking for a cash injection or way to achieve your business goals, apply for a Commercial Loan today, or find out more with Rangewell.
What are Bank Loan Alternatives?
As a business owner, your focus needs to be on ensuring strong growth and sustainability. Yet although you may have a detailed business plan stating what you need to achieve and how, you also need to decide how you’re going to raise the necessary funds to achieve this. As such, your first thought might be to approach your local high street bank. However, high street banks now have to contend with a number of rules and regulations that were introduced in the aftermath of the 2008 banking crisis, causing them to hesitate when dealing with small businesses. This is where applying for a Bank Loan Alternative could help. A Bank Loan Alternative is, as the name suggests, finance from an alternative source to your bank. So if you were declined or unable to raise the funds that your business requires using the traditional route, here’s what you need to know about Bank Loan Alternatives. Why should you apply for a Bank Loan Alternative? What types of Bank Loan Alternatives are available? What can a Bank Loan Alternative be used for? Why should I apply for a Bank Loan Alternative? With the rules and regulations that were imposed as a result of the 2008 banking crisis, high street banks have become more reluctant to lend to small businesses. This, in turn, has caused a rift between high street banks and small businesses, leaving many business owners looking to other avenues for the funds they require. So, if you’ve approached your local bank for funding but were turned down or offered an insufficient amount of funding, sourcing and applying for an appropriate Bank Loan Alternative could be the answer. Are you looking to support growth or smooth out uneven cash flow? Have you approached your bank but weren’t satisfied with what was on offer? Apply for a Bank Loan Alternative or learn more about how your business could benefit. What Bank Loan Alternatives are available? By exploring what Bank Loan Alternatives are available, your business could gain access to a wide range of business solutions. Just some of the products that are on offer to your business include the likes of Secured and Unsecured Business Loans, Invoice Financing, Inventory Financing and Merchant Cash Advance. All of these products work in their own unique way to raise the funds your business needs, helping to make business finance more widely available. However, in order to source an agreement that is right for your particular financing needs, make sure that you fully understand the range of products that are on offer to you before applying. What can I use a Bank Loan Alternative for? Because many of the products that are on offer carry little or no usage restrictions, there’s no limit to the number of ways a Bank Loan Alternative can be used. As such, you’re able to provide essential support to any area of your business. If you’re looking to receive a cash injection, smooth out uneven cash flow, purchase equipment, cover operating costs or refurbish property, for example, a Bank Loan Alternative could help. As such, applying for a Bank Loan Alternative could grant you the confidence and ability to achieve all of your goals and succeed. Are you looking for a Bank Loan Alternative? Making sure that your business has the funds it needs to succeed isn’t always easy. You may have turned to your local high street bank and found that they were unable to help. Although you may be tempted to use your own funds or postpone key projects, there is another way that you can achieve your goals. Thanks to the Alternative Finance Industry your business now has access to a wide range of Bank Loan Alternatives, which can support a variety of financial situations. All you need to do now is source an appropriate solution for your business, at a competitive rate. But how? Fortunately, we’ve already done the hard work for you. If you’re looking to source external funding for your business, apply for a Bank Loan Alternative today or find out more with Rangewell.
How to achieve sustainable growth
The key to a successful developing business is growth. As an SME you must constantly be weighing up your options, seeking out the fertile grounds for your business to establish itself and tap into new markets. The one thing that we as SME owners must not do is allow our business to become stale and experience a declining rate of growth. However, whilst focusing on achieving our current targets, what we must also consider is what lies ahead. For many SME businesses, the aftermath of a recent growth period can be the most trying. You may have expanded into new areas, added extensions or grown your customer base, but as tempting as it may be you can’t afford to relax. Following a period of growth, what many SMEs tend to experience is uncontrolled spending and a lack of direction. This needs to change. Taking back control Despite the UK’s current economic climate, SME owners are still eager to grow their businesses into new areas which is, undoubtedly, brilliant news. However, what we must be careful of is running before we can walk. Growth must be calculated and measured, simply growing for growth’s sake can be a risk that can easily cause problems later. If you’re considering expanding your business, consult your business plan first. Given your business’s current situation, you need to analyse your business plan carefully. Is it up to date and relevant? Is your business moving in a new direction and, if so, is it one you’re happy with? But most of all, how do you intend to maintain your business’s standing? In some ways, growing a business is like scaling the side of a steep mountain. You’re constantly having to find your footing, making sure your grip is both tight and secure. Moving up without a plan or before you’re ready puts you at risk of slipping. In business, expanding before you’re ready can put your business’s finances under a critical amount of strain. If you were to open a second branch in another location before the first is in profit or in a decent condition, you’re going to find management extremely difficult. You’ll have to pay more for increased inventory, staff wages, tax, energy bills and so on. Add to that the reality that you’ll be constantly having to travel between two location and you’ll have a situation where you’re uncontrollably wasting time and huge amounts of cash. One of the most common reasons for this is a lack of funding. Despite the vast amount of funding opportunities available, there are still many business owners who are intent on only using their own capital to expand. By doing so, you’re depriving yourself of the cash that you’ll need for reinforcing your position. If your cash flow isn’t strong enough, or your customer base isn’t reliable, you need to address why that may be first. The best time to expand your business The best time to expand depends on your business’s conditions. Growth isn’t just about opening branches or wanting a large workforce just for the grandeur, it’s also about preparing the foundations and key engines for further growth. If you’re adamant about expanding into a new location, preparation is essential. Typically your business must have at least 6 consecutive months of consistent profits that aren’t the result of a seasonal trend. However, expanding into a new location is a big step, so why not investigate other options first? There are so many ways you can grow your business and in a sustainable manner. Some of these include adding more equipment or staff in order to better cope with customer demand, marketing to grow your customer base, refurbishments for adding appeal and so on. When considering growth, the only boundaries that exist are your imagination and your funding. Growth Finance: When considering growing your business in a sustainable manner, Growth Finance can be a crucial pillar of support. Growth Finance is a fully customisable alternative finance package designed to help fund all manner of growth projects. To fully support your business, Growth Finance uses a diverse assortment of business loans in order to give you a lump sum or release equity in order to help fund growth projects. Business loans: Business Loans are an excellent way of acquiring a lump sum or cash injection for your business and can be used in any way you see fit. Loans are typically either Secured or Unsecured and come as short or long-term solutions that last between 1-3 years or 3-6 years and beyond. Throughout the term, you will be required to make fixed monthly repayments, plus interest. Repayments are calculated using: capital, term length and interest. With an Unsecured loan, your business could gain a sum in the region of £5,000 to £250,000. Should your business fall behind in making repayments, lenders can’t seize assets. However, it would affect your credit score making it harder and more expensive to secure finance in the future. On the other hand, a Secured loan can grant you access to a larger sum ranging between £5,000 to as much as £1,000,000. However, should you fail to keep up with the fixed monthly repayments, the lender can seize assets to recover the remaining amount. Asset Refinance: Asset Refinance allows you to unlock the value tied up in any of your existing and unencumbered assets, enabling you to receive a lump sum on the back of them. This is a great way to raise cash for your business without relying on your bank, allowing you to purchase new equipment and fund a wide variety of business growth projects. Technically a type of Secured loan agreement, as the funder takes security in the assets, terms can typically range up to 5 years, during which you will be required to complete fixed monthly repayments, plus interest. As such, should you fall behind in making fixed monthly repayments the finance lender can seize the assets in order to recover the remaining costs. At the end of the term, and once the finance has been fully repaid, ownership of the asset is returned to you. Our values are simple – We’re on your side. At Rangewell, our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of 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.
Alternative finance boosting manufacturers
Manufacturers in the UK are continuing to display their strength and resilience in spite of modern politics and economic uncertainty. According to the Confederation of British Industry, manufacturers are as defiant as ever and, with a surge of good fortune, hitting a 6 year high. However, manufacturers can’t afford to rest on their laurels, there’s still much work to be done and little enough time to do it. With average output at an all-time high, it’s time to make sure that your manufacturing business has everything it needs to go forward and excel. No doubt driven by increased demand for British-made goods, manufacturing isn’t the only industry seeing an increase. There’s also an increased demand for British craft beers, food and textiles too. But what you’re probably wanting to know is how best to take advantage and ensure your business’ long-term growth and sustainability? Well, the answer is simple. Alternative Business Finance! What is Alternative Finance? If you think that your traditional high street bank is your one-stop shop for business finance, I’m pleased to tell that you’re sorely mistaken. Ever since the 2008 Banking Crisis, many major high street banks have been confronted with large fines and increased regulations. As a consequence, high street banks are now turning away from SME businesses and setting their gaze firmly on big business instead. Left with nothing else but an ever-expanding rift between them and business finance, many business owners feel stranded, crying out for more help and financial support. But all is not lost. The alternative finance sector can help your manufacturing business further its goals and attain ever greater feats. Alternative finance is simply business finance offered by anyone other than your high street bank, exposing your business to a whole wealth of finance products all waiting to get plucked and put to good use. However, with thousands upon thousands of finance solutions to choose from, how can you be certain you’re getting the right product for your manufacturing business? This is where the finance extraordinaires at Rangewell can help. With our services and expertise, you could gain access to a wide range of diverse business finance products to suit your exact needs, including Business Loans, Leasing Agreements, Hire Purchase solutions and much, much, more! Business Loans: Business Loans are an excellent way of acquiring a lump sum or cash injection for your manufacturing business. They can be used for a wide range of reasons including asset purchases, premises refurbishments, cash injects and so on. Loans typically arrive secured or unsecured and are either short or long-term solutions lasting between 1-3 years or 3-6 years and beyond. Throughout the term, you will be required to make fixed monthly repayments, plus interest. Repayments are calculated using: capital, term length and interest. With an Unsecured loan, your business could gain a lump sum in the region of £5,000 to £250,000. Should your business fall behind in making repayments, lenders can’t seize assets. However, it would affect your credit score, making it much harder and more expensive to secure finance in the future. On the other hand, Secured loans can grant you access to a sizeable lump sum ranging from £5,000 to as much as £1,000,000. However, should you fail to keep up with the fixed monthly repayments, the lender can seize assets in order to recover the remaining amount. Leasing Agreements: Leasing Agreements are a method of finance that allows you to use manufacturing equipment for a temporary period. Such agreements tend to last between 1-5 years but could be stretched to 7 years if the equipment is very expensive. Depending on the type of lease, the asset may or may not appear on your business’ balance sheet. It’s also worth noting that rental payments may incur VAT which could be reclaimed on a quarterly basis. When talking about leasing agreements, you need to fully understand and appreciate the differences between the two types - Operating and Finance. Operating: leases cover only a portion of the equipment’s working life in exchange for a fixed monthly rent, so might not appear on your balance sheet. Rental costs take into account the usage of the equipment and the future predicted value at the end of the agreement. Operating leases work by the lender renting it to you for an agreed term. Unless you have set up a separate agreement with the supplier, you will be responsible for its maintenance and upkeep. Subject to conditions, at the end of the leasing agreement you can choose to either return or continue leasing the asset for a nominal fee at the lessor’s discretion. Finance: leases work differently. This time, the agreement now covers most or the entire working life of the equipment in question. Again, it works by the lender purchasing the asset and renting it to you for an agreed term. Throughout the agreement, you are responsible for the asset’s maintenance and upkeep and must pay fixed monthly rental charges that take into account use of the equipment and its future predicted value at the end of the contract. Subject to conditions, once the term expires you can either return the asset, extend the term or upgrade to a higher model. Hire Purchase: Hire Purchase is a great method of finance that’s often used by manufacturers and warehouse operators to construction firms in order to secure valuable pieces of equipment. Its popularity stems from the ability to become the equipment’s eventual owner. Hire Purchase solutions work by the lender purchasing the equipment from a lender on your behalf and letting you make use of it in exchange for regular fixed monthly repayments, plus interest. However, before you can use the equipment you must first pay the lender an ‘initial deposit.’ An initial deposit typically covers the full VAT and around 10% of the asset’s cost, although this is negotiable depending on the circumstance. Repayments are calculated over the course of the agreed term, incorporating both the capital and interest. Providing all the repayments have been concluded, ownership of the asset is handed over to you. Our services are simple, we’re on your side At Rangewell, our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of 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.
How to go national with your catering brand
Running a successful business in the catering industry is no small task. As exciting, diverse and flamboyant as the industry can be, it’s also extremely competitive. To take your business from an SME to a well-known and fully trusted national food brand you need to invest ample amounts of time, effort and funds to make it big. But with intense dedication and the right advice, there’s no reason why you can’t succeed in this endeavour. The Business Finance experts at Rangewell have come together and are once again offering you advice on how to transform your business into a highly successful national brand. 4 points to consider first 1. Decide what type of catering business you’ll run A simple first step but far too many businesses fail because the owners can’t decide on exactly what type of establishment they’re going to run. If you’re running a restaurant do you wish to specialise in Asian food, fried chicken or fish and chips, pies and so on? Should your goal be to become a food producer, are your chosen products going to be frozen vegetables, houmous, microwave meals or something more exotic? Establishing your brand’s identity is vital, you simply can’t be all things to all people. Attempting to do so usually ends in disaster as your customers won’t be able to understand what your business stands for. When you’ve decided, take the opportunity to go and do research. Become the expert in your chosen area and consider how you can do things differently in order to produce a superior product and service. After all, you can’t be a pizzeria set inside a fish & chip shop. 2. How to form the foundations of your business. Forming the foundations of your catering business can be tricky. If you’re going to run a restaurant you’re going to need access to a commercial kitchen that’s located in an area where your target audience can easily see you. The kitchen itself must be able to hold and support all the equipment too. But at this stage, many SME restaurants will have very tight budgets. Most SME restaurant owners tend to run their establishments on Leasehold properties, meaning that they’ll be renting the space for an agreed period and rent. You’ll also be responsible for insurance, admin, maintenance and so on, despite renting. In Central London, you could be looking at around £3,500pm whilst in Wandsworth, you may be paying £1,500. As such, it really does pay to look around before deciding on a location. Freeholds are an option where you own the land, but taking the cost into consideration, it is exceedingly rare. Meanwhile, food producers need to acquire a factory space in which to manufacture and package food, as well as a platform on which to sell it. When choosing a factory you need to ensure that they can handle and support the quantities that are needed. You’ll also need to ensure that their staff have the skills necessary to produce it. At an early stage you need to consider selling your produce anywhere you can. Your aim should be to acquire a contract with a popular supermarket. When it comes to acquiring a factory space, many food producers choose to hire as it will allow them to move to a larger, more specialised factory if necessary. 3. Growing your catering business Growth has always been vital in business, especially if you’re going to become a national food brand. There are many ways you can choose to grow your business, all of them requiring careful consideration. Ultimately, whether you’re a restaurant owner or food producer, you’re focus should be based around pleasing your customers in order to develop your brand’s reputation. For restaurant owners, expanding into new areas is going to be essential. Subsequently, you’ll need to do research into other areas, ensuring that the demand for your brand is strong. One way of testing the local demographic is to use mobile kitchens. If there is a strong demand and it makes financial sense, you can then think about establishing an entirely new branch. As such, this will only boost the necessity for new dining room furnishings and highly specialised, state-of-the-art catering equipment within your business. On the other hand, food producers will need to acquire essential contracts with supermarkets. This will, undoubtedly, mean moving into another a much larger and more specialised factory complex that will grant you access to more skills, equipment and storage space. Although renting may serve as a foundation, choosing to own your own factory may be more fitting financially and will firmly cement your brand into the industry. 4. Applying for finance At every stage of your catering business’ development, ensuring that you have a constant rate of growth is essential. However, although it may be tempting to dip into your own personal finances, this can often do more harm than good. You’ll be depriving yourself of key funds that you’ll need later. Instead, why not leave your own funds where they are and apply for business finance? Whether you need new equipment, other premises or a fleet of vehicles, the alternative finance industry can help. But with thousands upon thousands of finance solutions to choose from, finding the right one for your business can be challenging. That is why more and more business owners are turning to Rangewell when it comes to acquiring business finance. With our services, we can help source the perfect finance solution to suit your business’ needs exactly, including Business Loans, Leases, Hire Purchase and so much more! Business Loans: Typically Secured or Unsecured, business loans are excellent for raising capital for a wide array of purposes, including acquiring new equipment, expanding a new branch or factory, refurbishments and more. Applying for an Unsecured loan lets you can borrow anything from £5,000 to £250,000 without the need to set aside assets. Meanwhile, Secured loans help you acquire larger sums ranging from £5,000 to as much as £1,000,000. In exchange, the lender will require you to set down assets as security. With both options, you will be required to comply with a fixed monthly repayment scheme, plus interest. Leasing: Leasing agreements allow your business to borrow equipment typically for a period lasting between from 1-3 years. When discussing leases you need to understand the two types available: Operating: With this agreement, you borrow the asset for a portion of the asset’s projected working life span. No responsibilities, such as maintenance, repairs, registration and so on, are transferred over to you at any point. At end of the term, you’re free to either extend the lease or hand back the asset. It’s unlikely that the lessor will extend an offer allowing you to purchase the asset in question. Finance: Again, you’ll be required to commit to a monthly rental scheme. But this time the term can cover most of, if not the entire, lifespan of the asset concerned. You will also be required to accept certain responsibilities regarding maintenance, repairs, registration, administration and so on. Once the agreement has elapsed you are free to return, extend or purchase the asset from the lessor. Hire Purchase Solutions: If you require large, heavy and often very expensive pieces of equipment, a Hire Purchase solution is certain to be of great help. This solution is designed to help you acquire an asset and become its eventual owner by having an alternative lender purchase the asset on your behalf. Before you can install and make use of the asset, you’ll need to provide a deposit to the lender equal to a sum in the region of 10% of the asset’s total worth. Once paid, you can then make use of the asset whilst keeping up with fixed monthly repayments to the lender, plus interest. Once the repayment scheme has been concluded you become the asset’s owner. Our values are simple – We’re on your side. At Rangewell, our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of 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.
5 benefits of becoming a franchisee
Running a business can be fun and rewarding, but in the long run, it can and will demand a lot from you. For some aspiring entrepreneurs, the issue with becoming a business owner can be a lack of experience, understanding and knowledge in their desired sector. But rather than go and throw yourself into the thick of things, there is another way of achieving your self-employed dream. Franchising. What is a franchise? No doubt we’ve all passed a number of franchises as we walk along our high streets, noticing each of their brands dotted around numerous locations, which goes to describe the nature of franchises. A franchise is a wide and ever-expanding network of businesses all linked together through a shared brand. Although many entrepreneurs prefer independence, there is still a large portion who seek to enjoy and bask in the benefits of being a franchisee. 1) Work from home Although dependent on the sector and type of business, some aspiring entrepreneurs choose to work from home on account of the option’s flexibility. For many this would be a dream come true; you could finally skip the morning and evening commutes, saving yourself a fortune in fuel and travel costs. Plus with the average UK commute lasting in the region 75 mins, that’s an extra hour or more spent tending to your business and boosting productivity. 2) Flexible working Being part of a franchise offers you the benefit of being able to choose and adjust your working hours. This is why many people are choosing to leave full-time employment and seek further opportunities by becoming their own boss within a vast chain of franchises. If one day you choose to spend the morning off, why not make up for it in the evening? So long as key tasks are completed and appointments are met, being a franchisee can be less stressful and serve as an introduction to eventually being your own boss later. 3) Access to industry experts By joining a franchise, you can gain additional insights, acquire new skills and access first-hand expert advice from industry specialists. This can be truly invaluable if you’re entering your desired industry from a fresh perspective or seek to expand your current understanding of what’s required, serving you at every level of your career path. You could gain access to private seminars, demonstrations and advisors all made available for your network, teaching you to better manage your business. Plus, some franchises may also offer you access to additional funds during difficult periods. 4) Less risk Because your business will be running under a well developed national or international brand, you’re able to tap into their share of the market. Consequently, you’re almost certain to receive an instant influx of reliable loyal customers, all eager to spend their hard-earned cash. This is the dilemma that many business owners face, especially in the face of competition. It can be difficult attracting customers, even more so getting them to come back. If you’re an independent business owner competing against a major franchise, it only makes sense to become a franchisee. After all, why be a struggling rival when you can make yourself into an even stronger ally instead? Less risk, indeed… 5) Brand Franchises spend an absolute fortune getting their brands into the faces of their customers whether it be through TV commercials, poster campaigns, press releases, magazine adverts, product launch events, you name it they do it. As such, they’re sort of doing all the hard work for you. As a franchisee, your only role is getting your staff to hang up and display any marketing material delivered to your establishment. However, you could look at this in a different way. If you’re hoping to eventually become an independent business owner, analysing how they do their marketing will teach you some very useful tips. You’ll know what strategies work best and which to avoid, preparing you for later. How to become a franchisee If the idea of becoming part of something much larger seems an appealing prospect, why not take the first step towards a more secure cashflow-rich future? As a franchisee you can be part of a widespread national or international community, giving you all the help and support you need to succeed in your endeavour. However, becoming a franchisee will require a number of things from you. You’ll need to restyle and refit your business, serve only their goods and services, operate using their equipment, pay franchise fees and so on. All of these must be paid for before you can even display their name. Depending on the size, location and area, becoming a franchise could cost between £100,000 to £300,000. Naturally, for most aspiring entrepreneurs, parting with such a hefty sum in one go can be tricky. You might not have access to those sums in your account or parting with it could cause serious harm to your finances. This is precisely why Rangewell is stepping up to help aspiring entrepreneurs achieve their franchise-driven goals. With our help and support, you can gain access to an extensive array of business finance products, including business loans. Business Loans: Typically Secured or Unsecured, business loans are a fantastic way receiving a lump sum that can be used in however way you see fit, including cash injections, renovations, refurbishment, equipment purchases and so on. Applying for an Unsecured Loan let you can borrow anything from £5,000 to £250,000 without the need to set aside assets. Meanwhile, Secured Loans help you acquire larger sums ranging from £5,000 to as much as £1,000,000. In exchange, a lender will require you to set down assets as security. Why 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 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.
Securing the future of your business with growth finance
From start-ups to big business, growth is a vital part of running a successful business. Maintaining growth is often considered to be one of the most fun and exciting aspects, it’s an area where you can truly let your imagination run wild. However, it can also prove a challenging balancing act. It’s imperative that you avoid slow growth, it must never be allowed to stall. As any business owner will tell you, growth is crucial for staying ahead of the competition and providing the highest quality goods and services in your area. If your business falters in this key area, you can expect to see your customers going elsewhere, triggering a downward spiral. But with access to ample amounts of funding, ensuring your growth needn’t be a concern. At Rangewell, we’re dedicated to finding the right finance solution for all of the UK’s SMEs businesses. With our services and expertise, you could choose from a vast array of finance packages, including Growth Finance. Wondering which type of Growth Finance is right for your business? Find out more or apply today Growth Finance Whether you’re big or small, growth finance is extremely useful for fine tuning your business. This package is designed to stimulate growth in any way possible using a vast array finance solutions, each targeting specific areas in your development. By applying for this type of finance you could access Business Loans, Leases, Hire Purchase solutions and much, much, more. Business Loans: From refurbishments and extensions to equipment purchases and interior design, the ways in which your business can benefit is simply immense. Coming typically as secured or unsecured, your business could reap the benefits from a lump sum ranging from £5,000 to as much as £1,000,000. So, no matter the project, nor the goal, you can secure your business’s future in complete confidence. Leases: Excellent for businesses looking to borrow equipment or try out something new, leases allow you to secure pieces of equipment for periods ranging from 1 – 3 years. During this time, you will be required to make monthly payments. Plus, at the end of the term, you’re free to either give it back, extend the term or present a buyer. Hire Purchase: If you’re looking to purchase specialised equipment but lack sufficient funds, there’s no need to despair. With a Hire Purchase solution, a lender can purchase the equipment on your behalf. In order to secure its use, however, you must first pay a sum equal to 10% of the asset’s total value. From there on, whilst having access to the asset, you must commit to making monthly payments, plus interest. Once the repayment scheme has been concluded, ownership of the asset passes on to you. Our values are simple – We’re on your side So if you’re looking to expand, you can rest easy knowing help is at hand! At Rangewell, our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of finance, including Growth Equity Financing and Growth 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.