It’s in the nature of commercial enterprise that normal business revenue provides the funding through which enterprises perform and grow. From time to time, however, practically every business is likely to require additional funding.
Securing the funding that is most appropriate and cost effective for your particular business may be something on which it is worth taking professional advice. The following are some of the places you might start when looking for just that advice.
The government frequently voices its support for the economic backbone of small to medium sized businesses in the UK.
Its official website offers links to regional business support helplines and also to practical advice on sources of funding for businesses. Much of that advice is specifically directed to individuals interested in starting up a business.
Most of the UK’s high street banks pride themselves on the services, help and support they are accustomed to giving to small business entrepreneurs. In this connection, they have traditionally provided funding and funding advice on overdrafts and loans.
If you wish to arrange an overdraft or a loan, therefore, you might want to approach your local manager for the relevant funding advice. If you are looking to arrange a loan, however, you may generally be required to offer some of your company’s assets by way of security.
A cautionary note has been sounded by the accredited market research group BDRC Continental about the barriers faced by many small businesses seeking a loan or overdraft. In just one word, BDRC summed up survey respondents experience when seeking either a bank loan or overdraft – discouragement. Indeed, 47% of respondents seeking a business loan said they felt discouraged from doing so and 41% of those seeking an overdraft reported likewise. In the majority of those cases the discouragement was enough to put them off even making an application.
Independent funding advice
If your established company no longer qualifies for the sort of government help extended to start-ups, and if you are finding it difficult to get practical – and practically successful – advice from your bank, you might wish to consider independent sources of funding and funding advice, such as ourselves at Merchant Money.
We can tell you more about flexible small business loans ranging from £1,000 to £50,000 in value, with repayment terms ranging from just a few months to 2 years.
Loans such as this may typically be available only to established UK limited liability companies that have been in business for more than a year and where all of the company directors are over the age of 18. When making an application for this type of business funding, you may also find that some lenders require no security other than personal guarantees from two of the company directors.
Borrowing from such sources may have the considerable advantage of speed – we, for instance, aim to consider your application with one working day, and, following approval, generally make a transfer of the requested funds within just an hour.