Are you regularly reviewing your business financing options?
Having just had candid conversation with my insurance company about the annual renewals on our 2 family cars, I thought a complete review of my standard finances was long overdue.
I was under the rather idealistic belief that as a 56 year old with many years no claims, and yet another year of incident free driving, living in a quiet suburb of Brighton that I should benefit from the gratitude of the insurer in that I had not cost them anything, and as such my premiums should go down.
How wrong I was. If I had simply accepted the renewal from my car insurance company, I would have paid 30% more than I did last year!
When I tried to understand why this was the case, the operator could not explain and said they would redo the quote, as it was all done on a “live time” system, and miraculously it ended up being only marginally more than last year, accounted for by the recent increase in Insurance Premium tax!
This led me to start reviewing all of the things I have insured, and I estimate that I have or will have saved myself around £100 per month.
Not a vast sum of money, but it highlighted a very salient point. What was right last year, may not be right this year. Or it could be that there is something different available that represents a better alternative.
But why should business finance be affected?
The exact same principles apply to business finance.
The number of times I meet with small businesses who have had the same business finance facilities for a number of years, or are reluctant to entertain a particular type of facility or actually don’t know a particular finance facility exists, never ceases to amaze me, particularly in light of my recent insurance company issue.
Business advisors and Accountants are also often reluctant to discuss what is available with their clients, as they may not be aware of the huge array of business finance products available.
The last 5 years has seen a paradime change in the ways businesses operate, caused in many ways by the global economic crisis, and financiers have had to change their attitudes towards what the customers want, rather than what they can have.
But what is different now?
It may not be, but rather than simply accepting that everything is the same, get in touch with us to go through what you have, and who knows?
The emergence of the alternative Finance market has been at the forefront of this change. Money has become readily available from so many more sources that ever before, and the types of business finance has changed as well.
Who would have thought that you could apply for a small business loan, on line, providing only brief information about the business, and have an answer within 2 hours, and funds available in 24 hours.
Who would have thought that you could finance the purchase of stock to fulfil an order that your business has just won, and who would have thought you could finance a single invoice because you had an immediate cash need, and who would have thought that as a business that accepts card payments, you could repay a loan using the future credit and debit card sales for the business.
Gone are the days of your bank wanting to know the ins and outs of you, your family and the family pets before they would even consider taking to business about an overdraft or loan. Gone is the agonising wait to see if the see if the “computer says”, and gone is the embarrassing visit to the branch to be quizzed about what you wanted the money for.
Time is of the essence, and getting money quickly is so important as in business you need to move quickly to secure the orders.
So many new business finance facilities available to you, but where can you go to find these?
The Business Bureau, the leading Sussex based finance brokerage, would be delighted to work with you to do a review of the companies finances, and to discuss with you the alternatives and new products that may be of interest to you.
Know that you do not need to simply accept the business finance facilities that you have been offered as part of the renewal process. You may well have a compelling reason to speak to your business financier about getting better deal.
Author: Simon Button Simon is a highly respected business finance broker who has worked in the commercial finance sector for over 25 years.
Get in touch for details about how to Finance a business.