As a business evolves it will always need access to funds in order to keep progressing. When this cash isn’t readily available, however, it doesn’t necessarily mean plans need to be put on hold.
Whether you simply need to purchase new plant and machinery or you’re thinking bigger, there is a wide range of options available, many of which are designed to help businesses raise funding to fulfil specific needs, tasks or projects.
At some point while running a company, every business owner will discover a need for funding. It may be in the very early stages as a start-up, it may be to help maintain a healthy cash flow in an SME or it may be to facilitate a larger purchase or acquisition for an established company.
There are several key points in your company’s development where you may think it seems obvious to seek funding, but there are no rules on when you should explore your different finance options.
When it comes to raising finance for your business, the earlier you get in touch with an expert the more likely you are to find the right fit for you.
For companies that trade on credit terms, it’s important to monitor whether sufficient cash flow is available to fulfil new orders before customers pay.
Large orders and long credit periods can really stretch your cash flow because of the upfront investment that’s required.
Certain finance solutions have been designed to help businesses get around this problem, making it possible to trade on credit terms without tying up cash.
A common route to growth and expansion is acquiring other businesses that represent a good investment opportunity.
A large amount of money is usually required for this, and it’s not always possible for a business to rely on its existing cash flow for the purchase.
If you have identified a suitable acquisition opportunity, Hilton-Baird can help you find the right route to access the necessary funds.
Keeping your plant and machinery up to date and functional can keep your business running smoothly and is essential to protect the longevity of your company.
However, new equipment doesn’t come cheap and buying it outright can have a significant impact on your cash flow.
There are specific funding options designed to help you spread the cost and get the best quality equipment with reduced risk.
Whatever the size of your business, scaling up can require significant investment.
The most appropriate options can vary significantly, however, depending the stage of evolution a business is at. As an experienced commercial broker, we can help you identify the best match.
Buying commercial premises is one of the most expensive purchases a business will ever make.
While a commercial mortgage is often the most suitable option to finance any purchase, the process can be complicated and a large deposit is typically required, generally around 30% of the property’s value.
It could be beneficial to consider utilising other funding methods that release cash to help you raise the required deposit, and as a commercial finance broker we can help you find the best option.
When a company is being sold, one option that holds several key advantages is a Management Buy-Out (MBO), which involves the existing management team taking ownership of the company.
While advantages for the company include a reduced risk of failure and reassurance for employees, existing clients and trading partners, the financial side of a Management Buy-Out can be complex and involve numerous parties and funding methods.
Thanks to our vast experience when it comes to MBOs, we are able to guide you through the process and find the right lenders and investors to make it a success.
A Management Buy-In (MBI) works in a similar way to a Buy-Out, except it involves an external manager or management team buying the company.
As with a Buy-Out, Hilton-Baird has the experience necessary to guide you through the process, connect you with the right lenders and investors and facilitate a smooth purchase.
The reason you need funding for your business will typically determine the most appropriate funding method.
However, not every business qualifies for every funding solution and there is almost always more than one option to consider. It’s therefore always worth talking through the pros and cons of each option to find the best fit for your unique requirements.
With more than 20 years’ experience in commercial finance, Hilton-Baird is ideally placed to help you make the right decision when it comes to raising funding and can identify the most suitable options for your business.
To discuss your requirements with an expert, call 0800 9774833 or request a call back from one of our Funding Consultants to see how the input of an experienced broker can help you to unlock the most suitable facility.
Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders
