It’s difficult to know where to turn when you need business finance help. There are many options out there and they range from traditional bank loans to commercial finance, debt, owner financing and capital loans. However, before seeking out any one of these options you should ask yourself the following questions:
How will my business function over the long-term? Strategic plans are a fundamental part of any business, and business finance is an important tool for helping you achieve your strategic plans. Cash flow lending is often a short term solution to assist you manage a short-term cash flow problem. Commercial loan is an option when it comes to commercial finance, especially when you need to raise money for expansion. Debt and invoice financing are also an option for your business when you need quick cash; this option is usually best suited to medium-sized businesses.
Will meet short-term cash needs outside of my company affect my long-term strategic plans? If so, financing your short term cash needs with a credit facility may be necessary. In addition, you may find that there are difficulties in obtaining capital funding in the event that your business succeeds. Finally, your business may face difficulties if you’re unable to attract customers. Commercial finance is important business finance help when you’re either just getting started or have a small business that requires a significant amount of capital investment for long-term growth and success.
What are the advantages and disadvantages of working with an independent business funding broker? Working with an independent business funding broker allows you to access commercial mortgage lenders without having to go through the process of underwriting deals with them; this can be a huge advantage over working with traditional mortgage companies. Working directly with an independent business funding broker can also be beneficial for the borrower because it allows you to save on the cost of having to underwrite deals with your mortgage company; many brokers offer financing programs through their companies.
Is there a need for me to use invoice finance? You might think that there’s no need for you to use invoice finance to fund your short-term cash needs, but there are a number of advantages to using invoice finance – one of them being the availability of a large variety of sources for your short-term financing needs. Because invoice finance typically offers higher interest rates (because it’s a bank loan), you may want to use this type of funding for those times when you need to get extra money quickly. Additionally, working with a reputable broker means that you’ll be able to get the best deal on your invoice finance program. Finally, working with a professional (i.e., knowledgeable and experienced) brokerage can help you avoid costly mistakes that can be made when you do finance yourself.
As you can see, there are many reasons that you need to have access to a comprehensive strategic plan outline and accompanying financial statements. While some are more direct, such as getting business finance advice, others indirectly, such as using invoice financing to pay expenses. Regardless of how you use this important tool, it is important that you have access to detailed cash flow projections, and a detailed business finance plan that will give you a crystal clear picture of your financial situation.