It’s been said recently that businesses under three years old are twice as likely to use personal savings than businesses that have been established for ten years. But what does this mean? It strongly suggests a knowledge gap between nascent entrepreneurs and what the business finance marketplace has to offer them.
If a company sees a large order come in and needs instant liquidity to fulfil its expanding obligations, an unsecured business loan could do the trick, and if late payments are hindering your growth trajectory, invoice financing can help your cashflow.
Ultimately any commercial finance product cannot be all things to all businesses. You need to be sure that it works with your cashflow and that it doesn’t stop you from taking advantage of any business opportunities that may arise. It would help if you could talk to a decision maker at your bank, but you don’t get that type of service from them anymore.
There have ever been more options available for small businesses looking for funding. the trick is knowing where to find them. Using a broker can help cut through the confusion and, utilising their expertise, help you work out what is best for you.