Working Capital Woes – How Debt Finance Can Help

Let’s face it, the most common problems affecting most small businesses in the UK, are no secret. Cash flow or lack of it probably tops most lists in this regard.

While it may be a common issue for small many businesses, the circumstances that cause cash flow problems can be as unique as the DNA of each business owner. Late or non-payment, market or exchange rate fluctuations, shipping delays, equipment upgrades, the need for raw materials, human resources, and unanticipated demand, are all possible causes.

For many of the businesses we support here at Newable, the owners have worked hard to grow over several years. They have become experts in their field, relentlessly chasing greater sales income, or bigger and better contracts. Working late, often seven days a week, just to make ends meet. Sound familiar?

For some, growth occurs unexpectedly. Where having started small, the delivery of products and / or services has been so well received by customers, keeping up with increasing demand seems like a never-ending battle. As they doggedly juggle between trade receivables and accounts payable.

In an ideal world, this would be a good thing. However, nothing in life is perfect, and in fact, this is the point at which many businesses can become unstuck.

When Growing Gets Tough

The good news is trying to grow a small business does not have to be all doom, gloom and disaster.

The arrival of Fintech now means that business owners have unprecedented access to a wider range of finance options that simply did not exist as little as twenty years ago. What’s more, access to faster, fairer, and responsible finance, is on the increase.

Unlike equity or venture capital investment, debt finance can provide greater flexibility and freedom for business owners. It allows you to retain control of a business, you have worked hard to establish. While benefiting from a cash injection that can help make business continuity a much smoother, less painful process.

With the right advice and careful planning, business owners can borrow exactly what they need on affordable terms. Many lenders allow potential applicants to check their borrowing capability via online loan calculators. This enables business owners to take into account what the Equated Monthly Instalments will be, throughout the loan duration, so they can make a more informed decision.

Here at Newable we have a range of different finance options for business.

Find out how we can help you take your business to the next level.

By Carolene Thompson