Now, more than ever, ensuring you have the correct funding in place for your business to function and grow is vital. There are many types of business funding available, so it is important to ensure you are utilising the most efficient source for your business.
There is still time to make the most of the current Coronavirus Business Interruption Loan scheme which is set to end on the 30th September 2020. There are a number of benefits to the scheme, such as no repayments for the first 12 months, all fees covered by the Government and no interest payable for the first 12 months. You can borrow a maximum of 25% of turnover, however multiple loans of up to £250k can be taken from different providers with no need for personal guarantees.
Even if you have unsuccessfully applied for a Coronavirus Business Interruption Loan in the past, it is still worth applying before the deadline at the end of September.
It is always worth looking at any grants available, The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) provide tax incentives for investors that are designed to encourage equity investment in unlisted trading companies in the UK. Small businesses that take advantage of these schemes will significantly increase their chances of investment and investors will be rewarded for taking a greater risk.
There are many options out there to help you with the funding you may need to either get your business off the ground or to maintain and grow your business. For entrepreneurs just starting a new business, you may require some funding for items such as premises, insurances, incorporation bills, marketing collateral and recruiting staff. Once your business is established, you may need some short-term funding to pay some bills or to develop a new product or service. You may also be relying on your invoices to be paid so you need some short-term cash to help you through whilst waiting to be paid.
Reviewing your current funding on a regular basis is a worthwhile exercise to ensure you are using the best option available. Some of the common funding options available are:
- Asset finance – you can use this to fund any asset, from forklift trucks to printers.
- Invoice finance – if you invoice another business, you can use your invoices to apply for funding.
- Merchant cash advance – use your credit card transactions to access funding.
- Trade finance – pay for goods based on an order using trade finance.
- Working capital – get a working capital loan to finance everyday operations.
- Property finance – get access to bridging loans, development and commercial finance.
We can review your current funding and make recommendations on the best options available including any of the above options, ensuring you secure the correct finance for your needs.
Get in touch with the friendly team at Clear Vision Financial Management, you can email us email@example.com