We’ve heard all sorts of reasons for companies not seeking business finance- and to be perfectly frank, many of them are little more than excuses.
They’re not in the ‘please sir, the dog ate my homework’ category of excuses; far from it. We’re dealing with hard-working, well-meaning businesspeople here; all of them experts in their field. Trouble is, that field isn’t business finance. And that results in questionable decisions based on misunderstandings, or a skewed perspective of financial reality.
Debunking myths around business finance
Listen to some of the things we’ve been told. Can you see yourself in any
‘My bank can’t help me, so I’ve run out of options’. Once upon a time that might have been true, but that was back in the day. The world of 21st century business finance is a dynamic marketplace, bursting with options. Many lenders offer a variety of products to suit a range of businesses. Asking a finance broker – like KC Finance – means you’ll be able to tap into a wealth of knowledge to explain not only what the options are, but also how they work, which would work best for you, and why.
‘I can’t afford to invest in new assets, it will ruin my cash flow’. The clues here are in two words – ‘invest’ and ‘asset’. An investment delivers a return, and an asset will help deliver it. Buying a new asset may well be a huge investment, but look beyond the here and now to the long-term benefit you will derive from a much-enhanced cashflow when the revenue starts rolling in. Revenue that your new asset is earning for you. Paying monthly will make the asset more affordable, and your cashflow will benefit from that enhanced revenue at the same time. Win win!
‘We prefer to make our purchases with cash’. Why would you want to do that? Are you some kind of latter-day Del Boy? Of course not. If you’ve built up cash reserves in business through diligence and hard work, that’s where they need to stay. Knocking the stuffing out of your financial cushion can cause problems further down the line, should the unexpected happen. What kind of unexpected? No idea; that’s what makes it unexpected.
At home you might prefer not to take the finance option, which is fine –
but home and business just aren’t the same. In business, consider all the funding options. We’ll guide you through them, and explain the tax implications. Hadn’t thought of those? We had. That’s why business finance is our speciality…
‘I’m not sure what I can finance’. That’s like going into a restaurant and not ordering food because you haven’t read the menu. The reality is that the majority of business assets can be financed. There will be an option out there that suits the project you have in mind. The way to find it is to ask a finance broker. There’s no charge for asking. What financial product might do it for you? Asset finance, a commercial loan, a revolving credit facility, or how about invoice finance or property finance? Get in touch and we’ll explain what they are, how they work in general, and, more importantly, how they might work for you.
Working with KC Finance is like having your own in-house finance expert, because we’ll always have your best interests at heart – after all, if we can’t make sure you succeed, we’re not going to succeed either!
We’re never further away than the nearest phone, and that means you’re no further than that the best financial products either – or the advice that will fine-tune them to suit your needs.
What’s more, we’re a friendly bunch, and always happy to answer questions. Challenge us to solve your problems. Go ahead;
give us a call on 01482 223311. Let’s talk money!