To start this week’s Business Finance Bulletin, research from Hitachi Capital Business Finance has revealed that businesses are now less fearful of contraction or collapse compared to last year. The swing in confidence is a signal that businesses are seeing growth prospects again.

When businesses get back into a growth phase, that typically brings with it a need for additional working capital. This has been borne out in a survey from unsecured business finance provider Iwoca. We look at the findings which highlight an increase in demand for short term, unsecured finance.

Wrapping up this Bulletin, we have our monthly review of the latest insolvency figures. We look at how the number of firms entering into some form of insolvency arrangement is on the increase.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

The start of a New Year can have a negative impact on a company’s cashflow but at least there’s a solution….

For more information on short term business loans and whether it can work for you, simply contact us for a no-obligation chat.

In the latest Business Finance Bulletin, we kick off with… the election. Sorry! We look at how this distraction could affect small businesses, access to finance and spending habits.

On the back of findings by Hitachi Capital and the FSB, more attention is now being given to the impact rising costs is having on small businesses. If you are faced with increasing costs, what you can do to preserve your bottom line?

During periods of growth one thing small businesses want is quick access to finance. To close this Bulletin, we look at what short term finance provider Yes Growth can do to support growing businesses in need of additional working capital.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

According to the Centre for Entrepreneurs new company formations are at an all-time high. In this episode of the Business Finance Bulletin we look at the numbers and where the entrepreneurial hotspots are.

Metro Bank, one of the so-called challenger banks, has committed to helping more small businesses in 2017 with funds to support growth. How could they help you?

Cashflow problems can hit a business at any time but quarter end and quiet seasonal periods can be particularly tough. We take a look at how short term loans can provide much needed cashflow relief.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Due to illness, BLS’s Rob Warlow has been unable to prepare his weekly video Bulletin, so this week, a text-only version.

A Triple Whammy Cashflow Crunch

Whilst this time of year is the season of joyful celebration, for some business owners it can be a stressful time when it comes to juggling and managing cashflow.

As we approach the year-end there are businesses which can face a triple whammy hit to their cashflow. Each of these reasons is bad enough but combined, they can cause chaos to your cash position.

• If March is your Financial Year-End, then your Corporation Tax will be due by the end of December
• This quarter could coincide with your VAT payment period
• And if that’s not enough, you may be faced with a fall in sales and hence reduced cashflow, associated with the holiday period

In order to keep you credit record and payment profile ‘clean’ you need to be what you can to ensure these commitments are met.

But what to do?

Here are some steps to take.

1. To preserve cashflow consider talking to a select number of your creditors and see if they will agree to extended payment terms
2. Chase any outstanding invoices owed to you which are overdue – don’t be shy in chasing, this is money legitimately owed to you!
3. Take out a short-term loan (terms from 3 months to 24 months) to help put your cashflow back on track
4. Consider using Selective Invoice Discounting to unlock cash tied up in outstanding and new invoices

Don’t be hostage to a cashflow crisis; take firm action.

If you want to know more about short-term loans or Selective Invoice Discounting get in touch and we will be happy to chat you through the options.

Personal Guarantees… What Exactly Are You Signing Up To?

If you have every borrowed money and operate through a Limited Company then, as a Director you have probably been asked to sign a Personal Guarantee.

But do you know what signing such a document entails?

According to findings in a survey carried out Wirefund, a working capital loan provider, a large number of business owners are not aware of what they are signing.

When asked to describe what they understood a Personal Guarantee to be, just 45% could accurately outline what was at stake, which is that the bank would ultimately be able to repossess your personal assets if the business cannot pay back the loan.

Worryingly 21% said that a business owner/director who signs a Personal Guarantee would simply be personally guaranteeing that the money owed would be paid on time, to the best of their ability… a long way off reality.

Despite this lack of understanding, the majority of business owners have agreed to provide a Personal Guarantee when borrowing money. The survey revealed that 79% stated they had not been put off taking a business loan simply because it included a request for a Personal Guarantee.

The bottom line is that ultimately your personal assets can be at stake but in the survey 61% were not aware of this.

In the vast majority of cases, when lending to Limited Companies, lenders will want a Personal Guarantee, so be mindful of what you are entering into. Wirefund on the other hand is one the rare lenders which don’t insist on a Personal Guarantee.

To find out more about their loan product visit their website www.wirefund.com

That’s It…

That brings this text-only version of our weekly Business Finance Bulletin to a close. We hope that normal service will be resumed next week!

In the latest Business Finance Bulletin episode Business Loan Services’ Rob Warlow looks at the latest Business in Britain survey from Lloyds Banks which reveals the strong level of business confidence and the one key issue which is holding businesses back.

On the alternative finance scene Rob talks about findings from small business finance company Liberis on how SMEs are sourcing finance and what success they are having.

Staying with alternative finance a look at the latest statistics from the Peer to Peer Finance Association which show further growth in the level of finance support by P2P platforms… but is there a slight blip in the amount lent to small businesses?

And in the Business Finance Tip of the Week Rob looks at the short term loan market and how it can help those businesses which have temporary cashflow gaps.

If you would prefer listening to this episode of the Business Finance Bulletin then check out our podcast version by click or downloading below via our Soundcloud channel or via our itunes channel.