Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Overcome your business finance challenges

The uncertainty about the UK's economy after Brexit makes many businesses wonder about their future. Some entrepreneurs fear that trading relationships with partners and customers in the EU could be disturbed, affecting their bottom line. Others are encouraged by the potential benefits, particularly when it comes to exports.

We don't know yet what the UK's relationship with the EU will look like after 29 March 2019, but business owners may understandably wonder if they'll be able to maintain a steady cash flow during and after Brexit.

Fortunately, there are several funding solutions available that could help UK businesses get through tough times, stabilise cash flow, or simply pay a VAT bill. Let's take a look at some of the options.

Business loans

If you need to pay an unexpected bill or cover upfront costs, a business loan could be a good solution. An unsecured loan allows you to borrow without risking any assets (machinery, commercial property and so on). Instead, the lender will ask you to give a personal guarantee.

There are plenty of business loans available without long-term commitment, with terms as short as three months.

Revolving credit facilities

Revolving credit is similar to a business overdraft. You'll get a pre-approved credit limit from which you can draw down funds as an when you need them. Interest is only paid on what you actually use, and as soon as you've repaid some of the money, you can withdraw more.

Although interest rates tend to be higher than fixed business loans, this option may work out cheaper in practice since you don't pay for the funds you don't use. It's a convenient funding option that gives your business a safety net when you need money quickly.

Invoice finance

If you invoice your customers, invoice finance gives you an advance based on the value of your unpaid invoices. You'll usually be able to get around 85% of the value from the lender immediately, and as soon as your invoices have been settled by your customers, the lender will transfer the rest of the money minus their fees.

Trade finance

Wholesalers, distributors, and importers can use trade finance to bridge the gap at the beginning of the supply chain. Based on confirmed purchase orders, the lender pays your supplier directly. Once the goods have been shipped and you've invoiced your customers, payment goes straight to the trade finance provider.

With this option, you can continue to buy stock and supply your customers without delays.

Final thoughts

Only time will tell what the future holds for businesses in the UK after Brexit. No matter what happens, it's important to remember that there are many different funding options to help you master business challenges.

This was a short introduction to alternative business finance, but there are many more options available. If you need help to find the right one for your business and your situation, Funding Options can help you find the most suitable funding.

Sponsored post. Copyright © 2018 Funding Options

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.