The benefits of having a funding review are many, but the main reason is it will make sure that any facilities that your business has in place, or intends to arrange, are structured correctly for now and the future.
Does your business have the right working capital facility?
Are you proposing to finance investments, or have you done so in the past?
Sometimes, businesses take out a simple business loan when Asset Finance might have been a better choice, or even a secured loan to get a better rate and longer term. A business could have amassed a lot of separate facilities over time and a consolidation loan might help to reduce the costs and repayments.
And then there are pricing changes. Many businesses take on debt and leave it to run through to completion, but interest rates and fees from funders change rapidly with new and improved products and terms coming to market every month. We will carry out a review of the current debt in the business, ensuring you are receiving the best rates and terms possible.
A business funding review will also allow you to sit down and plan properly for any growth in turnover or capital expenditure that you have planned over the next 12 months.
Once the right type of funding is agreed upon, the key then is to make sure the rest of the terms are fair and competitive. Is the length of the facility appropriate to the purpose of the borrowing and are the repayment terms suitable, for example can you overpay or repay early without penalty?
Productivity Finance employs ex Business Bank Managers who operate like independent and impartial business finance advisers, much like High Street bank managers did in the past. We have access to the whole of market, which means we work closely with the main High St banks, the challenger banks, the peer-to-peer lenders and other alternative and niche finance providers.
Our review is free and confidential, and if we feel you have made some good choices along the way, we’ll tell you. If, on the other hand, we find that you could benefit from a better solution, we’ll work with you to put it in place and improve the profits and cashflow in your business.
If you would like to take advantage of this valuable free consultation, please get in touch with us.
PS. The British Business Bank has produced an excellent guide to help businesses understand the different type of funding that is available for a business and you can access a copy here.