Every entrepreneur has big ambitions once they’ve got their business off the ground, but in a market where most firms operate on tight margins and lean budgets, it’s crucial to think big.
This also applies when attempting to kickstart your finances and source the funds required to grow. But don’t fret if you’ve hit a brick wall, as it’s entirely possible to transform a small operation into a multi-million pound enterprise.
Here are some routes to explore as you plan for business growth:
- Look close to home
Friends and family still remain amongst the most common sources of finance for small businesses. Many of the world’s biggest companies were born on out of a family fund, with determined entrepreneurs scraping together savings and borrowing from relatives. But remember to treat the transaction as you would a bank loan, ensuring the lender understands the terms, what interest (if any) is involved and when they can expect repayments. Drawing up a written agreement can help to minimise the risk of any future conflict.
- Don’t be scared of the banks
Whilst lending amongst traditional suppliers remains in scarce supply, you should never eliminate your high street bank as a viable option. Many business owners don’t even get as far as filling in the loan application for fear of instant rejection, yet there are still those out there willing to invest in smaller firms.
- Never forget the alternatives
Banks aren’t the only institutions offering financial assistance to businesses. The boom in alternative lending has seen a flurry of solutions flood the market – many of which offer better terms than those demanded by the banks.
Here at Praetura Asset Finance, we offer three core funding solutions – leasing, hire purchase and refinance – which can be used for a multitude of options from purchasing costly equipment, combating debt, funding mergers and acquisitions and helping to keep a healthy cash flow.
Alternative finance is growing at a phenomenal rate, with more than £24bn expected to be spent on leasing agreements alone in 2015, helping firms fund expensive equipment, plant and machinery.
Here at Praetura Asset Finance, we understand that running a business isn’t cheap and can prove tough at times, which is why we offer a number of viable paths to source the funding you need in a way that best suited for your business.
To find out more, call us today on 0333 323 7800.