With interest rates rising and day to day costs increasing. It is becoming more and more expensive to run a business.
Tied in with repayments kicking in for loans taken out under various government COVID schemes, notably the Bounce Back Loan (BBL) and Coronavirus Business Interruption Loan Scheme (CBILS) we are unfortunately seeing more and more companies struggle with making repayments.
Now this may seem counter intuitive, but don’t borrow more! Not straight away anyway.
When cash is tight it is easy to think that a cash injection into the business would resolve it. Which, to a degree it will. There will be cash in the business to cover these payments, but will it fix the actual issues?
Obtaining finance for your business is arguably the easy part. There are many lenders and brokers out there who will be happy to give the business what it wants. But that is the issue, as it is not necessarily what it needs.
From our experience, very few business owners are unaware of all the different banks, products, and terms available to them. And are happy to be led by the thought of having more money in the bank to cover these costs, especially when they are promised the world.
One of the key aspects to these cash squeezes is the amount of time that is spent juggling creditors which is both an inefficient use of time and demoralising.
And that’s where Farr Business & Finance differ. We look to provide genuine solutions to business financial challenges. If that entails obtaining additional finance, then we can use our extensive panel and products to do so, but only if this is the right thing to do. Sometimes these cash challenges can be solved by changing certain aspects of the business.
So, if your business, or clients, are encountering struggles with payments to banks, suppliers or day to day costs, then please do get in touch. We do not charge broker fees, so why not pick up the phone to have a chat?
Our Top 3 Learnings…
1. Sort it before it’s too late – as soon as there is a problem, deal with it. Don’t let the situation get worse or borrow more money straight away. You’ll be amazed at how quickly a company can go from an easy repair job where banks want to help, to the point of no return.
2. Speak to an expert – use their knowledge and experience to help your business. Nobody knows it all but there are likely to be people who have dealt with this before and better placed to help. We arrange finance daily, just as running a business in your industry is your expertise, this is ours!
3. Don’t borrow more money – getting credit and loans is fairly simple and lots of people will be claiming they can get you money quick, which they probably can. But borrowing more money without fixing the crux of the problem will only pour more fuel on the fire. We can arrange financing quick, but finance done right.
Get in touch with us at Farr Business & Finance, providing Better Business Finance, by Farr!
01473 561123 info@farrfinance.com www.farrfinance.com
Contact:
matt@ farrfinance.com
