Taking on debt finance is not something that should be done without considering all your options available. With the number of lenders and lending products on the market, it can be a little overwhelming… that’s where we come in to help. There are a lot of options! Often many people are not even aware of the full finance offering that is on the market and typically end up taking on finance that has not been designed for their particular needs.
Firstly, what is the reason for the finance? Different finance facilities are designed specifically for those needs. For example, if you are looking to purchase office equipment or a company vehicle, then it may be best to look at an asset finance facility. If you are looking for finance as you struggle to collect amounts owed from customers, then an invoice finance facility may be your best solution.
If you mismatch a funding product to your need, it will likely work out to be more expensive and result in higher costs for you and your business. Typically asset finance will work out at a lower cost to you if you purchased equipment than if you were to take out a term loan and use the money to buy the equipment.
Secondly, you will need to consider the timeframe your business plan allows. Whilst certain finance products are specifically designed for the need as mentioned above, there are certain facilities that take longer to get in place than others and therefore depending on your situation, it may be worth getting something in place sooner rather than later. This will allow finance to be secured at a point of need, allowing a refinance option down the line.
Whatever the reason behind you seeking finance, get in touch with our internal corporate finance team and discuss your situation and reasons for considering debt finance and we will be able to help assess what will be the best route and options to peruse, even if this means that debt finance in general is not the right way forward.
We will then help you through the process of acquiring the right type of finance. If not, our internal Strategic Consultancy team or Business Turnaround team can help you get closer to achieving your goal without the finance, should this prove to be the best solution for you.
Contact us today on 02085300720 or email businessdevelopment@nordens.co.uk
