Thinking about financing your business or are you considering a refinance package? Probably for many people, the answer is ‘yes’ to one or the other. Financing your business, whether it’s for starting up or to fund expansion is a vital part of any business, meaning it’s crucial to get it right.
So where do you start when it comes to financing your business?
The first place a lot of people will think of is their bank. But in the long term, this could turn out to be very costly. Your bank isn’t necessarily going to have the same priorities as you, meaning financing your business isn’t necessarily going to be the most important thing on their minds. The more cynical amongst us might even say that the most important thing to a bank is trying to sell you products. So before you pick up the phone to your bank, consider an alternative – speaking to an independent financial adviser first.
For most of us in the business world, it is a challenging time at present. It means that good quality advice on how to go about financing your business is even more crucial to your chances of success. We’re often approached by business owners who tell us they can’t get finance from their bank, or are worried that in asking for more money, their existing financial arrangements will end up costing more as well. But that’s not the end of the road. If this has happened to you, make a call to your financial adviser.
How can an adviser add value and help you with financing your business?
That’s a question we’re often asked and there are several parts to the answer. When looking at your business finance proposition, a good independent financial adviser will start by reviewing the circumstances of your business and the type of financing your business needs.
Even if your bank has rejected your finance request, your adviser is likely to be able to re-package the request. We’ve known of many cases where a bank has overturned its initial decision and agreed to lend after the request has been reviewed by an independent business adviser.
Alternatively, your adviser may well be able to find a competitive solution for financing your business from another provider. The best advisers will have access to finance providers across the marketplace – from traditional high street lenders such as banks and building societies, to ‘niche’ providers who may not be directly available to the public.
How else can an adviser help you with financing your business?
Your adviser should also have extensive current knowledge of what types of finance and propositions lenders are prepared to support and should tell you immediately if they believe your finance request does not meet the current requirements.
Another advantage of using an adviser is that they can take an overview of your business, think ‘outside the box’, create a bespoke package of solutions for most circumstances and be creative with the solutions to business finance problems.
The best independent advisers will project manage the identification and provision of your finance solutions from start to finish and liaise with all the relevant professionals involved, such as your solicitor and accountant.
Talking to an adviser about your business’s finance could also open up a range of financial options you might not even have been aware of. All good advisers won’t just look at your business finance needs in isolation; they will take a holistic view of your business – looking at all aspects such as your pension provision, employee benefits and protection.
Organising, or reorganising financing your business can be a stressful undertaking so let your adviser take on some of the strain and free yourself up to spend time on your business. After all, that’s what’s most important.
For a free chat about your business finance call Jeff Lenihan or Rebecca Bendle on 0845 230 9876 or e-mail firstname.lastname@example.org.
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