In this line of work it is often that the need for finance is reactive, and the job of the Commercial Finance Broker is almost firefighting, to find or establish a funding solution that will essentially provide the business with the cash injection it seeks at the right time at the right cost.
Unfortunately, when the need for finance is reactive, clients tend to find less success in their applications because typically they would have made several applications in the meantime, direct with either their bank or high street lenders, to no avail.
Why? why do businesses fear the use of commercially sound finance arrangements prior to being cash strapped or at the point of failure?
Is it the lack of advice? is it the lack of time? Or, is it because it’s easier to hide in the sand until you can’t hide anymore!
Recently we were approached by a company who had exhausted all avenues in raising capital but couldn’t understand why! In theory their business was sound and generating good revenues. However, the management of their business was not great, missed Direct Debits every month, not just one, it was like a who’s who of DD rejection. Then came the complex business structure which had every credit line available, but again was ill advised or mis managed, and then came the poor invoice factoring facility that was thrust upon them, without the correct guidance. They were at the desperation stage and at that point no one worth their salt is going to be able to place a finance arrangement let alone your bank.
The purpose of this article isn’t to abuse the business owner or even berate them, it is designed to help. Help you, the business owner…hopefully reading this, to work closely with your accountant or business advisor; in the many guises they appear.
Wouldn’t you like to know today, what finance options are available based on current information? Wouldn’t it be great to have someone to look over all your documentation and let you know what the hiccups would be and how to resolve them so you can plan better for the future of your business?
My recent research and discussions with my clients, has shown me that business owners believe that their application for finance is a sign of weakness; almost a resignation to failure…but I don’t know why?
I’ve pledged to give all our clients and potential clients and even those that may never use us, a free Business Funding Review! That’s right FREE, with no obligation.
Not a half-baked application, not an over the hill estimate, but an actual review that in the end will give you a functional and useable report to take to your business advisor, accountant or your business partner; to understand what’s available today.
We’re here to give your business the best chance!