Running a business comes with responsibility, and when a company begins to experience financial difficulties, the decisions made by its...
Access to finance can be an important part of growing a successful business. Whether you’re investing in new equipment, recruiting staff or expanding into new markets, funding can provide the platform for future success.
However, not all funding is created for the same purpose. Before submitting an application, take a moment to ask yourself these five questions.
1. Why do I need this funding?
Are you investing in growth, or are you trying to bridge a gap in cashflow?
If your funding is simply being used to keep the business afloat, it’s worth understanding why that gap exists before taking on additional debt.
2. Will this funding improve my financial position in six months’ time?
Think beyond today, will the money generate additional revenue, improve efficiency or strengthen your business? Or will you simply have another repayment to manage?
3. Have I reviewed my cashflow properly?
Cashflow challenges don’t always mean a business is failing. Sometimes they’re caused by slow-paying customers, rising costs or seasonal fluctuations. Understanding the cause is the first step towards finding the right solution.
4. Have I explored all my options?
Additional borrowing isn’t the only answer. Depending on your circumstances, there may be opportunities to restructure, negotiate with creditors or improve your financial position in other ways.
Seeking independent advice can help you understand all of the options available before making an important financial commitment.
5. Am I making this decision under pressure?
It’s easy to make quick decisions when creditors are calling or bills are mounting. Taking time to seek professional advice can provide clarity and confidence, helping you make decisions that are right for your business in the long term.
At Lines Henry, we don’t believe every business needs more borrowing. Sometimes businesses need a clearer understanding of their financial position, practical guidance and a recovery plan.
The earlier those conversations happen, the more options are usually available.
If you’re considering business finance because you’re worried about cashflow or existing debts, we’d be happy to talk through your situation in confidence.
Book your free 30-minute consultation
