Raising enough money as a small business can be a difficult task, that’s why it’s crucial to establish a solid financial base. Whatever your business, you must be clear on how much money you need and where you’re going to source it from.
Much of the discussion during a company’s early life focuses on small business finance. Will the bank lend me enough? If not, what are my other options? While startups of the past have relied on savings and bank loans, traditional bank lending has become significantly harder to negotiate.
One alternative funding method that can prove useful to companies of all sizes is asset finance. With various lending options available including leasing, hire purchase and refinance, specialist funders like Praetura Asset Finance can provide access to deals that closely match your funding needs.
Whilst asset finance can be pivotal for new businesses, it’s just as useful for more mature firms, where the likes of rising operational costs can quickly eat into cash flow.
Entrepreneurs should always remember that cashflow is the lifeblood of your business and be wary about using cash reserves unnecessarily. There are many instances where a company uses its cash to purchase costly assets, only for another issue to strike, such as losing a major customer. To prevent going cap in hand to the bank for a bailout, asset finance can be used to fund the purchase of equipment by spreading the cost over an easy repayment plan, which can also take into account any seasonal fluctuations.
Asset finance can be used to fund a multitude of business decisions from management buyout / buy in, mergers / acquisitions as well as boosting cash flow and reducing HMRC debt.
At Praetura Asset Finance, we understand that it’s important that your business has the right financial packages in place; that’s why we tailor all funding options to ensure growth and prosperity.
To see how our asset finance specialists can help your business, call 0333 323 7800.