The reality of business is that, at some point, you’ll probably need to look for some form of finance. Despite this being the case for most companies, what many fail to ask is, are they looking for the right type?
Just ten years ago, the world of business finance was a relatively simple affair. If you were in need of a loan, you’d approach the bank. The process was often long-winded, intrusive and slow. A decade on and things are different. Alternative business finance products have arrived and are rapidly evolving.
When the banks suffered losses in 2008, they tightened the purse strings, and SMEs were hit hard. This is where alternative business finance products like Invoice Finance and Merchant Cash Advances entered the market and began to truly challenge traditional business funding habits.
There are now several routes businesses can go down to secure the right kind of finance for their requirements. Is your business looking for the right one?
Invoice finance and merchant cash advances are just a few of the products that have emerged in recent years. The flexibility and adaptability of these products has made many firms think twice before heading to their high street bank.
If, for example, you take card payments from your customer with a PDQ card terminal, there are financiers who are able to advance you cash which you repay through future card sales. This is called a Merchant Cash Advance.
With invoice finance or factoring, we are able to advance businesses up to 90% of their outstanding invoice/s value. This can help aid cash flow and keep businesses moving forward. Accessing tied up cash is a great way to take advantage of opportunities, to expand, or anything else that needs an immediate cash injection.
There are lots of alternative ways to fund your business. Speak with our team today and we can discuss what options available for you specifically.