Signs Your Business Needs Funding and Why a Business Cash Advance Is Best

Published On April 18, 2016 | By Brandy Chambers | Business

Without the appropriate financial investment, businesses will likely stagnate and eventually fold if they can’t compete in the current market. Having access to additional funds will both help your company survive and then reach its potential.

Knowing when your business requires an injection of cash is an essential quality for a business owner to have. Here are some signs this may be the case:

  • Negative Cash Flow – Constantly being in the red will severely hinder the chance of growth. You’ll be more worried about balancing the books rather than investing in the business itself, a sure sign that funding is required.
  • Expansion – The primary objective of any company should be to grow and increase its profit margin. To achieve this, funding will certainly be required for such areas as advertising, hiring new staff and obtaining new commercial locations, etc.
  • Investment – In order to grow as a company, you’ll often need to use innovative marketing ideas to push your company image. With additional funds at your disposal, you’ll have more confidence to invest in creative ideas.
  • Modernising – Keeping up with the latest technological advancements can be a constant worry for SME owners. Out-of-date equipment or stagnating advertising campaigns are a tell-tale sign that healthier cash flow is required.

Traditional methods of gaining additional funding may not be the answer. Instead, an increasing number of companies are turning to a Business Cash Advance to sustain growth. This is a highly desirable method for smaller businesses looking to obtain finance without the constraints of a conventional bank loan.

How They Work

The concept is relatively simple. Once an amount is borrowed, usually anything up to £100,000, repayments are only made once a sale is made via a debit/credit card. This means that any payments on the loan are linked directly to company performance – if sales are down that means repayments will follow suit.

Unlike traditional high street or online lenders there are no strict regulations or hidden charges to contend with, only the initial onset fee paid upfront. Every time you make a debit or credit card sale, either in-store or online, you’ll then pay back a percentage of the sale typically set between 5% and 20%.

In addition, a Business Cash Advance doesn’t involve assets such as personal property or the business itself to secure the loan. Extensive credit checks are also not required and the application process is relatively quick – this has given rise to the number of SMEs obtaining one who has been refused elsewhere.

A healthy cash flow is imperative for companies of all sizes to sustain growth and stay up-to-date with modern trends. Many businesses will struggle with funding at some point during their existence however, looking for additional finance to help through a sticky period.

In response, a Business Cash Advance provides the perfect respite for many UK businesses, usually granted within a few days with high approval ratios also. Find out how a business cash advance can work for your SME here.

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