is obvious that businesses require cash to finance their day-
to-day activities, but with money tied up with creditors it
becomes difficult to run the show. So what needs to be done
in such cases?
If it’s a short term need, an agreed overdraft facility
can give you temporary funding. With this facility you can overdraw
to suit your requirements and repay overdrawn balances as soon
as you have the funds, and you’re not tied to specific
dates for drawdown or repayment. There are many financial institutions
that provides such kinds of loan which can be repaid over periods
from one month, so it is ideally suited to short term needs.
is also required often at least not daily is for procurement
of new Equipments.
If you’ve available funds with you to
invest in new or additional equipment, you may want to keep it
for any emergency purpose. Also, you might think that buying
the equipment with the aid of finance can make you eligible for
tax relief on the interest you pay.
you do decide to buy with the aid of a loan,
then you need to look out for a flexible finance solution that can be tailored
to meet your business needs. With many financial institutions
you can now choose to pay interest only for up to the first three
years or so. These institutions also restructure the loan repayment
schedule keeping mind the fact that businesses don't get their
decisions you’ll make in a business will
be related to property – whether to buy or rent? Should
you move into bigger premises or expand the premises you have?
How well do your premises meet your business requirements?
you decide to buy a property, then there are a wide range of
mortgage lenders to choose from and make a right decision.
Many mortgage lenders
provides tailor-made products to suit your requirements, with
additional facilities like fixed or floating
interest rates, repayment holidays at the beginning or during
a loan, possible cashback or specialist packages for doctors
or farmers, or through a self-administered pension scheme.
business undertakes overseas trade and receives payments in
currency other than sterling, a currency overdraft
from any financial institutions will enable you to iron out those
cashflow peaks and troughs. You can match your foreign currency
borrowing to your anticipated receipts in that currency, thus
avoiding the effects of any unfavourable movement in the exchange
rate between the time you borrow the funds and the time you repay
If you receive
income in a particular currency on a regular basis, you could
your business needs in that currency.
Many financial institutions’ currency term loans are specially
designed for businesses requiring finance in any major foreign
currency. So also, by repaying the loan from your currency income,
you can reduce the administrative costs of converting your currency
receipts into sterling.