SME business loans: how can they benefit your business?

Business loans have become part and parcel of running almost any growing empire. Whether you need to invest in equipment, grow your workforce or simply need some additional capital to take care of short term bills, there are plenty of tailored SME business loans to choose from.

Let’s take a closer look at how SME business loans can help your business to reach its full potential and overcome common financial obstacles on the path to growth.

Grow your business without risking cash flow

One of the biggest challenges that business owners face is finding the financial resources to grow the business without risking cash flow. There are a number of reasons for wanting to do this, not least to maintain a positive cash flow to help ensure essential costs such as utilities, wages and stock are taken care of.

Small business loans can help to protect this cash flow by offering alternative financing for almost any area of your business. By providing working capital facilities that function like business overdrafts, you’ll instead be able to carefully budget repayments that fit in with your predicted revenue.

Avoid hefty upfront costs with asset finance

Whether you’re taking on a new construction project that requires additional or specialist tools, need to grow your IT infrastructure or expand your vehicle fleet, making hefty upfront outlays can take a big chunk out of your available working capital.

However, the reality is that not making these purchases can often inhibit growth and hold your business back from winning larger contracts and clients.

With asset finance such as hire purchase and lease agreements, you’ll be able to avoid these large initial costs by spreading the cost of the equipment over a convenient number of months or years.

Depending on the type of asset finance you choose, you can either hand back the tools or equipment at the end and renew another lease if needed, or pay the remaining value on the equipment for outright ownership.

There are plenty of options out there that can help you to access a variety of tools and equipment, so take a look through each option and let us help you find an asset purchase solution for your business.

Unique, flexible financing solutions

The world of business loans has grown exponentially over the past decade with new financing products coming to market to meet the changing needs of the SME landscape.

Unlike traditional business loans which would see you borrow a fixed lump sum repaid in monthly instalments, today’s SME business loans can be tailored around a strategy that suits your unique business needs.

For example, seasonal businesses can take advantage of merchant cash advance loans which are repaid only each time a payment is received by debit or credit card, whereas invoice financing is a great way to use your outstanding customer invoices to your advantage.

It really will depend on the type of business you run, your revenue streams and the amount of loan that you’re looking for, but we’re confident that we can help you to find a solution that meet your financing requirements.