UK Debt finance – financing business growth

There are so many questions from SME businesses that are looking for debt finance of some sort or another. Valuable time is wasted by SME stakeholders trying to source the right deal from the right people at the right price for the right reason. It can be a minefield which may not be as desperate as leading to a company downfall but lack of funds not available within a reasonable timeframe can spell the beginning of missed opportunities, months of struggle and eventually an insolvency disaster waiting to happen.

What is the finance for?

Be clear on what you want your finance for. If you are looking at:

* Working capital
* Expansion – skills, diversification or perhaps acquisition
* Development of ideas
* For use in the actual product or service
* Proving the market
* Proving the product

Or something else in this vein then go for it.

If you are looking for funds to:

* Cover losses
* Repay your debts
* Paying your salary

Then generally speaking, forget it!

Have you seen Dragon’s Den on BBC2? What happens when the entrepreneur divulges the fact that the funding they are looking for is to go on wages? Yep, even if you’ve not seen the show you can probably guess. The entrepreneur walks away empty-handed. If you are just trying to repay debt then perhaps it’s time to talk to the professionals and get some sound advice.

Types of finance (UK)

Consider all the funding options available. Look around your local area, talk to the chambers of commerce, find out the local investment trusts. Ultimately, make sure you pitch to the right type of funder to suit your borrowing requirement.

As a rough guide, consider:

? Debt finance / Small firms loan guarantee (SMFLG) (5k+)
? Friends and family (Up to 80k)
? Business angels (Typically 50k up to 500k)
? Specialist funds / sometimes wealthy business angels in a niche market (Up to 2M)
? Venture capital firms (1.5M+)

Outside or in conjunction with the above you may also do well to consider asset finance companies (assuming you have assets in your business) and also invoice discounting / factoring (assuming you have a debtor book and robust contracts terms and conditions of business).

Some key issues

The funding companies that you approach will be looking at other issues surrounding your business. To be a little crude, they’ll want you to ‘show them the colour of your business underwear’. So what will they want to know?

– Financials
– How do the numbers relate to your plan?
– Are the numbers consistent?
– Can you confidently recall the key numbers and understand
how they relate to your business?

– The management team
– The right blend of skills to see the goal through?
– Concentrically focussed?
– The right product with the wrong team is generally less
attractive than the wrong product with the right team!
– Ability to deliver in spite of setbacks

– Product / Service
– Do you have a unique selling point (USP) that makes you
stand out from the competition?
– Have you protected your interests in the product or service?

– The marketplace
– How big is your market?
– Who’s your competition? Tip: Never say ‘we don’t have
competition’. You may have a USP but there is always
competition even if it’s an alternative solution to your
offering. Make sure you come across as knowledgeable about
how you fare against the competition.
– How will you get access to your market?

Really understand these key issues. The funding companies are checking you out as much as the numbers relating to the deal.

Don’t ask for too little or too much

If you really understand your business to the level that a funding company would like then you would get the request for money correct the first time you ask. It’s embarrassing if you get the figures wrong.

Write out a cashflow forecast for your proposition.

Remember that the greatest gap between revenue and overhead costs may not be month 1 or 2, it may be 8 months down the line.

A typical cycle for raising finance may take 2 to 18 months. If you run out of cash in month 9 and you’re 5 months from the next injection of funding then you may not survive the year. The extra costs associated with filling a cashflow gap may also squeeze your margins to the point you operate at a loss.

Too much funding is equally embarrassing. You have to pay the funding company for that extra cash in the business and potentially at a later date request more funding if say you hit upon a needed expansion plan. What will the perception be of a company asking for funding who were wildly out on figures the last time around?

Summary

There are a number of options available in the UK for business funding.

Asking for the right amount of funding, for the right reason with the right lending source will save you time and costs. Make sure you do the work and demonstrate your ability to run and manage your business.

As a footnote, if you still cannot get funding and are faced with insolvency / personal debts and you would like some help and advice then do get professional help as early as possible.

Vehicle Finance for Blacklisted People Should Not Be Hard

Getting vehicle finance when you are listed on a credit bureau is often quite a hard thing to do, but the fact is that it really shouldn’t be. The biggest problem with obtaining finance when you are listed is the fact that most fianc� houses will see you as a high risk and they will not be willing to offer you the money to pay for the car you are buying. When it comes to a lease though, you never actually own the car until it is fully paid off.

The biggest benefit on the other hand, is the fact that you get access to a car at an affordable rate that you will have to pay for the duration of the lease. People often get put off the option because they don’t like the idea of not being able own the vehicle you are paying for. It is only once you settle the final balance on the car that you actually get to own it.

The fact that you are able to get such a low monthly repayment means that you will end up paying a lot more in the long run, but that is something that you have to accept when you apply for finance under these circumstances. If transport is an urgent issue for you then you really won’t have a lot of choice, but if you are willing to wait and continue to improve your financial track record then you can apply for it through the normal channels and you won’t have to deal with all that.

Why Are Blacklisted People a Higher Risk

If you have already been listed with a credit bureau it is often due to the fact that you have mismanaged your finances in some way and you have landed up on the blacklist. Once your name is on there you need to intentionally focus on fixing your finances over the coming months in order to get your name off the list and become financially viable again. Unless you can prove that you are able to manage your money correctly, you will always be a much higher risk to any financial institution.

Fortunately, you are still able to carry on with your life when you are on the blacklist, because there are financial options that are being made available to people that are trying to recover their finances and get them back on track. When vehicle financing becomes too much for you to handle each month, you can look at things like refinancing, adding a balloon payment or switching to a lease option rather than purchasing the car outright.

When you adjust your payments for your car, you are to pay a lower premium for your car and you free up some of your income to help cover any additional costs that you might have throughout the month. Your insurance premium will be more affordable and you will be able to handle the running costs of the vehicle with ease.

Finding Vehicle Finance for Blacklisted People

Once you take a look at all the financing options that are available to you, the world will open up and you will have the car you have always wanted.

Real Estate Financing Without Losing It All

Real estate financing should be one of the very first things that you do in order to purchase a home, purchase land or even a commercial investment. Without funding to back up your purchase, you are simply wasting your time.

The good news is that financing your dreams can happen with low interest rates and terms that fit your needs. If you don’t have a financing company just yet, here are a few tips to help you to find the best financing option for your needs.

Before You Look For A Home… Real estate financing should be done before you look for property, so that you can insure you have the backing to purchase the size and cost that you are after. The first step is to get a few quotes from several lenders and compare them.

Many times, this can be done right on the web, within minutes. Finding out who will offer you the lowest interest rates, the best terms and the lowest closing costs is important and this can only be done with the help of a quote comparison.

The Company That Counts Although there are many types of real estate financing companies, not all of them are the most qualified to handle your need. It pays to invest some time in learning the history of the company and the tools that they have in place that can provide you with a secure loan.

Working with a personal lender can be helpful in getting your questions answered and helping you to address the concerns that you may have.

In a day and age when there is just too much to do and little time to do it in, consider finding your real estate financing right on the web. Lenders are competing for your business, which means that you can expect great things from them!

With lower interest rates and excellent term options, even those that have poor credit or no credit may be able to secure the home or business of their dreams.

Bike Finance – Own A Vehicle Through Low Cost Finance

If you are thinking of taking out Bike Finance [http://www.bikefinance.org.uk] to purchase a bike of your choice, then ensure first that the loan is made available to you at low rate of interest and also that overall costs of availing the loan is less burdensome. But to ensure such a loan, you must keep these things in mind.

First of all, you should have a credit rating that is acceptable to the lenders. in other words, you should not be carrying many risks for the lenders, take out copies of your credit report from all the three credit rating agencies and make sure that it has no errors about the payments that you made in the past. If your credit rating is poor, then pay off some debts and apply for these loans with an improved rating,

It is advisable to make a good amount of down payment to the lender. Save the money for few months prior to applying for the loan. The higher down payment will ensure many benefits like low interest rate for bad credit borrowers and easy approval of the loan.

Depending on your requirements and circumstances, you can borrow bike finance in secured or unsecured options. For greater amount of loan to buy a new vehicle, the secured loan is made available against a valued property of the borrower. Low rate of interest is the main advantage of such a loan. The unsecured loan is meant for small borrowings, without collateral. Interest rate will be little higher. Repayment of both the secured or unsecured loan is made in 5-7years.

Bad credit borrowers too can take out bike finance once they are willing to make higher down payment. But they must repay the loan in timely manner or they will loose their property, in case of taking tout the loan in its secured option. Apply for the rate quotes of as many lenders as you can. This way, you can find out a suitable deal at low rate and fewer extra charges.

Your Alternatives Suitable For The Different Varieties Of Car Finance

The actuality connected with possessing a car and daydreaming of possessing a car are usually completely unique if you take into account it from the point of view regarding the money needed in each one.

You can invariably fantasize of possessing the fastest supercar, however ‘can you possess it’ should be the quandary that crosses your your head. Additionally, even if you can have the automobile, exactly how do you plan to acquire it? A costly item such as a automobile is certainly not easy to purchase since you can’t go to the display room, point out exactly what you favor and then fork out in full for it in hard cash. No matter whether you may have the money in hand, as a result of taxation rules, as well as, policies and regulations make it prohibitive to conclude the purchase, if not hopeless.

Car Finance is surely an Option

It is possible to own a vehicle with car finances without the bother involved when filing your taxes. Unless of course you can shell out the full amount in cash it is a wise choice on the part of the purchaser to choose car finance. The next step you need to perform when this happens is to pay the remaining sum in greater payments within a few weeks so that you do not throw money away on the interest of the finance utilized. Car finance is a good selection for individuals who might be dealing with the belt tightening brought on by the economic downturn.
When you have little or zero understanding of car finance, the very best selection is always to search for the assistance of a car finance broker, they’ll have the ability to get you the very best offer since their work is always to find out about all the best car finance options that are at the moment available.

The Sorts of Car Finance

Without a doubt, you will find 3 types of car finance.

�Leasing – PCP (Personal Contract Purchase)
�Hire Purchase
�Car Loans

PCP is an excellent choice for those people who are not searching for high value offers. This can be a nice option for people who want usage of a vehicle, however have no desire for purchasing one. You obviously won’t have to pay the full amount of the car after the lease period (2 or 4 years) but the remaining amount (lease amount paid deducted from the actual value of the car) – a great option when you frequently change cars or want to have a ‘feel’ of the car before actually buying it. The only drawback being the restricted mileage you can clock on the same. If you want to own a car, hire purchase is the choice for you as one the monthly payment plan is paid down the car is yours. Should you go this route the monthly repayment is going to be higher than PCP.

Car finance brokers are wonderful because they’re going to get you the car loans that you just will need together with the best deals through the lenders on their lists. It stands to purpose that offering your personalized particulars to 20 lenders will get you extra offers than just offering to a single lender.

Irrespective of all of that, making use of a car finance broker for car loans is often a sensible choice, and through the use of a broker on your car loan you happen to be getting good. By implies of our substantial database of brokers and lenders we can come across you the top auto mortgage deal possible online from the info you supply to us.

Seek Recommendations When Re-Financing

Homeowners who are re-financing their home for the first time may need a great deal of advice to assist them during the process. While homeowner can certainly research the process of re-financing by themselves, this can be a cumbersome task which is difficult, if not impossible. While it might be possible for a homeowner to educate himself enough to make informed decisions, it is unreasonable to expect a homeowner to be up to date on the most current information in the re-financing industry. It would also not be reasonable for homeowners to learn enough to make a definite decision regarding re-financing. The homeowner may still require some direction regarding which options are best suited for the needs of the homeowner.

Fortunately there are two simple steps homeowners can take to tips the odds of obtaining the most favorable re-financing in their favor. These simple steps include consulting with friends and family members who have recently financed and turning to industry experts for assistance.

Consult Friends and Family when Re-Financing

Believe it or not consulting with family and friends is one of the first steps a homeowner should take in the refinancing process. Those reading this article might be somewhat confused by this suggestion because in the previous section we stressed how it would be virtually impossible for a homeowner to thoroughly educate themselves on the re-financing process. Surely, we are not implying every homeowner has a friend or family member who is capable of given detailed financial advice in regard to re-financing. However, friends and family members can be helpful in a different capacity.

Friends and family members who recently re-financed their own home likely did a great deal of research and legwork before making their decision. They also likely formed useful opinions, either negative or positive, about the lender they used in the process. It is this information which can be very useful to homeowners who are considering their own re-financing. Homeowners can obtain information such as which lenders are currently offering the best rates as well as which lenders are easy to work with and responsive to the needs of the homeowners as well as which lenders do not take a vested interest in helping the homeowner to succeed.

Ask Experts for Advice when Re-Financing

One piece of advice which cannot be overlooked when re-financing a home, is asking an expert in the re-financing industry for advice. These experts may have costly consulting fees associated with their assistance but most homeowners would agree these fees are certainly worthwhile especially if the result in a significant cost savings for the homeowner.

We previously stressed how the issues associated with re-financing can be quite complex and difficult for those outside of the industry to fully understand, however, those in the industry spend their days devoted to learning more about re-financing, keeping up to date with changes in the industry as well as new developments and figuring out how to best serve the customers. All of these characteristics make it clear that homeowners should really consider employing the services of a financial planner with a great deal of experience in re-financing when they are making decisions regarding the best re-financing option for their situation.

Again, friends and family members who previously consulted with an industry professional can supply candid opinions about those they met. This can save the homeowner a great deal of time by eliminating potential candidates who friends and family members thought performed poorly.