Fortunately, cash flow doesn’t have to be problematic. There are a number of funding solutions that we can help you with that will give you access to working capital and enable you to concentrate on building your business.

The three key types are business overdrafts, stock loans and invoice finance.

Business Overdrafts

Chances are you’ve used an overdraft facility before. It’s when you withdraw money from your bank account even though the balance has dropped below zero. The advantage of an overdraft is that there is no fixed term for the loan – you can dip in and out of it as needed. The disadvantage is business overdrafts often require you to provide property as security against the debt. This tends to mean the size of your facility will be linked not to what your business really needs, but to the value of your property security.

Stock loans

A stock loan advances you funds to buy stock for your business. It allows you to adapt your stock levels for seasonal fluxes or one-off opportunities. You may be able to borrow up to 100 percent of the value of the stock, however, the lender may want to see confirmed orders or a verified opportunity before advancing the money. Also, due to the liquid nature of these assets, financiers may seek additional securities.

Invoice finance

Invoice finance (previously known as factoring) provides a line of credit against outstanding accounts receivable. As you issue an invoice on credit terms to a customer or client, the lender will advance you a percentage of the funds due, with the remaining amount paid once the invoice is settled in full.