While there are innumerable opportunities for trade growth, using business finance can help to boost your plans, and your business, in a big way.
Using finance to increase annual revenue
One degree of growth is turnover. An increasing turnover is a clear sign that your market situation is progressing and moreover, your business is improving. One way of increasing turnover is finance and can lead to a flourishing business.
Although you will already appreciate the requirement of working capital to cover the operating costs of your trading business, working capital finance allows you to be a more considerable presence; purchasing more significant quantities of stock or tendering for more significant contracts. There are three options of such which can be used to boost your company growth.
Flexible invoice finance
Providing credit terms for your customers allows you to build excellent relationships and your business can handle large payments better over time.
Invoice finance the process of freeing up cash from your invoices to customers, using the value of the service provided by your business to release funds into your account. Instead of waiting for the usual 30 to 60 for payment of your invoice, you instead sell it to the invoice broker. They, in turn, will advance up to 90% of the value to your business account immediately. This then keeps cash flowing through your business, allowing you to fund your costs.
Invoice finance is merely releasing the current value of the business on a regular basis, using existing assets. It means your company can afford to do more and grow at an increased rate by not being hampered by cash flow.
Purchase order finance for stock purchases
This is perhaps a more appropriate option for businesses buying large amounts of stock. This type of funding can support your growth by keeping costs low while increasing your working capital resources.
Many lenders will see your purchase orders as tangible assets and provide stock finance for you to acquire more substantial quantities of said stock.
General supply chain finance provides a real surge in available funds and capital by using the credit rating of other firms in your supply chain. The best example of which is, if you were to supply larger corporations or businesses, you can utilise their credit rating to get investment at competitive prices.
Business growth loans
As and when new business opportunities arise, you may need upfront securities or assets, so you can make the most of them and take advantage of them when they occur. Whether tendering for most substantial contracts that could lift your business beyond its current limitations or acquire new technology required to improve performance, you might need to procure the money to pay for it quickly.
Growth loans can be obtained very speedily and directly. They are also a reliable option that businesses can utilise at different stages in their growth. The fundamental point is if you understand what is needed in the short term and where finance can support you in achieving that goal, this type of short-term growth loan could be the right solution for your business.