Most small businesses start looking for financing just days before they need it and then spend only a few hours researching their options on the internet.
By leaving it to the last minute, the number of lenders that can help promptly is limited and interest rates can be much higher.
Often, a business will end up signing up with one of the major High Street lenders without considering the many other alternatives available.
However, High Street lenders have a more limited product selection and loan terms are generally more limited.
Where should businesses go for advice?
Brokers can help, but because the relationship is usually a one-time transaction, they may not have a deep understanding of the business and its financials.
However, accountants are ideal people to assist businesses in obtaining financing as part of the advice they provide throughout the life of the business.
Certified Public Accountants are professionally qualified and managed and can access the most suitable solution from the entire market.
While it is possible for a business to receive financing directly without consulting, this can cause problems if this results in a rejection due to an inappropriate sponsor’s application or products. unsuitable product.
What is ‘correct’ finance?
The following should be considered to ensure the best results:
– Quantity suitable for business needs.
– It’s affordable.
– Appropriate duration.
– The most suitable product available.
– The security provided is not too complicated.
– Most competitive interest rates and fees.
How can a business make it more attractive to donors?
A good credit score will make applying for funding much easier and cheaper. Therefore, it is important for businesses to monitor their credit score before applying for funding to see if it can be improved first.
Availability of up-to-date and reliable cloud accounting information means that this information can be used to support a funding application. Without this information, there is a risk of getting the wrong solution.
Some newer lenders can connect directly to the business’s direct cloud accounting data to streamline the application process.
If a business is experiencing short-term working capital difficulties and is having trouble paying its tax liabilities on time, the easiest option may be to contact the Internal Revenue & Customs Service. HM’s authority to agree to a Time-of-Payment agreement. These arrangements typically include agreeing to pay tax liabilities in monthly installments over an 18-month period.
Your accountant is the perfect place to help businesses get financing as part of a comprehensive package of advice on the capital, cash flow and other financial matters they offer and should be involved with. from the very beginning.