As I write this, I find myself wondering when the right time is to stop wishing everyone a Happy New Year, but as this is still the first half of January, I feel I am not making any social faux pas by continuing to wish all of you, clients, suppliers, friends, and readers and very happy 2021.
After all, you cannot have to many good wishes sent to you for the year ahead.
It is probably not how we envisaged the start of the new year, but none the less, it did not come as a surprise either when Boris Johnson announced the national lockdown. My immediate thoughts were admittedly selfish with the home-schooling fear, health worries, economy worries, the list goes on, but as soon as I abolished dry January and had a gin, my overwhelming concerns subsided as I put everything into perspective and my focused turned to ‘what can I control’ mode.
In my personal life I am in control as much as I can be, we have got a routine and know what to do, albeit sometimes reluctantly. So, I turn my attention to my business and after a productive first week back at work, and after multiple conversations with connections, the same concern was coming up in every discussion… business finances.
So, now I have identified the areas I can influence within my business by doing good and using my superpowers to help other businesses. Many business owners I talked to felt that although they were ‘muddling’ through financially, that the uncertainty that lays ahead is concerning and they want to ‘future-proof’ their finances as possible. But where do you start? What is the right route to take for your business? What options are there? Which bank do you go to? Where do you get the best deals? What does it all mean?
All typical questions I can support you with as I offer small business financial services. Below are just a few highlights on what options you have out there for financing your business in the current situation, but as with everything, it is better to get in touch with me directly to discuss.
Why use East Anglia Business Solutions to help finance your small business?
Because quite simply small business finance solutions are and have been for a very long time a service I have provided and have excellent testimonials on. Importantly, unlike a bank who will only advise you on their own products, I have a universal understand of what is available in the market, putting me in the best place to advise you as I am impartial, allowing me to just focus on what is best for your business.
So, what are Bounce Back Loans?
From the UK Government website, they describe the Bounce Back Loan Scheme (BBLS) as enabling ‘smaller businesses to access finance more quickly during the coronavirus outbreak’. Sounds great. However, there are a few considerations to this solution:
Legacy banks are not opening new business bank accounts, therefore small businesses cannot access the BBL scheme.
Even if you are an existing customer, legacy banks can take up to 3 months to process BBL.
Newer banks like Starling much quicker but even they are now restricting new accounts.
So, what is an alternative finance solution for small businesses?
Business cash advance is a type of financial lending based on a business’ future revenue. It comes in a few different forms, the most common of which is a merchant cash advance, and it is sometimes referred to as revenue loan, a turnover loan, or revenue-based financing.
A business cash advance can also be used for several purposes, such as asset purchasing, expansion, HMRC/VAT payment, stock, cash flow, renovations, marketing or even relocation.
A cash advance is different to a conventional business loan, because not only can it be offered as a short term & unsecured loan, but your repayments are also taken directly from card payment machine as a percentage (8% to 20%) therefore less taken out in quiet times.
There is far less paperwork involved in the Business Cash Advance, you can apply for a min of £2500 and up to £300,000, the funds are available within a few days.
But the real bonus to this solution is that with the uncertainty going on, there are no early settlement fees should you find you do not need all the money, but should business interruption continue, it is easy to renew the agreement for another advance (80% of customers renew).
Making a Business cash advance flexible with your business.
I cannot reiterate enough, that I truly do understand the difficulties a lot of businesses are facing right now, so that is why during this lockdown I will be focussing on supporting small businesses in the region with personalised finance solutions. Just email me on carl@eabsolutions.co.uk to arrange a no obligation, free consultation.
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