Business Finance Solutions For Growth

November 9, 2021

You want to grow your business. You know this means putting more money in, but you don't have the funds for that.

The only option is to borrow. Which is okay, because that's how most businesses fund their growth.

But who do you borrow from? On what terms? And who is going to guarantee that the lender will get their money back, whatever happens?

Fortunately, in today's market there are many business finance solutions that help to answer these questions.

Affordable finance solutions

You'll be putting the money that you borrow to work in your business, to generate profit. It could be used to fund:

  • More employees
  • New inventory
  • Extra assets, such as vehicles or machinery
  • Upgraded business processes and systems

The extra profit these generate should be more than the cost of the finance.

Whatever the finance solutions you're considering, you should think about what use you'll put the money to and how you'll be able to make repayments. Making a budget and forecasting your cashflow are important to your decision-making process.

If you're not sure about the affordability of the finance options available, consider taking advice from a professional, such as your accountant.

Fast and flexible finance solutions

Circumstances can change quickly in business, meaning that your financial plans may have to be quickly adjusted. Reasons for this happening can include:

  • You're presented with an unexpected opportunity.
  • A major customer fails to make payment.
  • You lose a vital asset, such as a key member of staff.

Whatever the change, it has financial implications for your business. This is where having access to flexible finance solutions can make a massive difference.

Some loans are more flexible than others - it's important to be aware of their specific terms and conditions. There are other forms of funding, such as invoice finance, where you can choose how much to draw on and when.

Sometimes you need to organise finance quickly, because the unexpected puts your cashflow under pressure. Often this is at payroll time, because you can't afford to let your employees down. One bad payroll experience can seriously damage your team and undermine trust.

The convenience of fast, flexible finance may mean it costs a little more than a more traditional loan, but this cost is often offset by other benefits.

Secured vs unsecured finance solutions

Banks and many other lenders seek to control the risks of lending by asking for security. Particularly for larger loans running into tens or hundreds of thousands of pounds.

They often gain this security by holding legal rights over one or more business assets. If you fail to make repayments, they have the right to sell the asset in order to get their money back.

Because they have security, they can give these loans at a preferential rate of interest.

Unsecured finance is the solution that most businesses are looking for. The benefits of unsecured loans are:

  • They're faster to arrange.
  • No assets are at risk.
  • They're usually for smaller amounts and can be repaid relatively quickly.

Unsecured loans are harder to access if your business has a poor credit score. Many lenders still require a director's personal guarantee, even when the arrangement is unsecured.

Alternative finance solutions

You have many more finance options available to you today than previous generations of business owners.

Traditionally, businesses have been funded through personal investment from the business owner, private loans through friends and family, or borrowing from their bank.

Today there's huge diversity in the number and form of finance providers, and in the mechanisms available.

Fintechs - financial services companies that harness the power of the internet - are on the rise. Crowdfunding solutions, in various forms, have never been more accessible.

Choosing the right finance solution

Finding finance for your business has never been easier, and also harder.

Easier, because when you type a few words into a search engine, such as Google, you're faced with pages of potential funders.

Harder, because when there's so much choice, it can be difficult to know which way to go.

What you want is the business finance solution that best meets your needs in terms of cost, flexibility and accessibility. This is where speaking to a business finance expert can make a huge difference, because they can guide you through the options based on their knowledge and experience.

Talk to us about business finance solutions

Every day our team speak with business owners exploring their funding options. Many have plans to grow their business and they need additional working capital that's flexible and affordable.

Some of them come to us needing cash in a hurry, because they've run into a funding crisis.

Whatever their situation, we do all that we can to help them. We work with a panel of 250 finance providers who between them offer a diverse range of funding options.

Because we work with so many providers, and have experience supporting so many clients, we'll have encountered others in a similar situation to you.

Let us help you find the right finance solution for your business. Get in touch with us today.

Jamie Davies
Managing Director

As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients. 

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Disclaimer: JD Capital Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.
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