Let’s be honest, the world of business finance can feel like a maze of jargon and paperwork.
But at its core, business financing is simply about getting the funds you need to keep your business moving, whether that’s getting off the ground, bridging a quiet patch, or scaling up for something exciting.
In this article, we’ll walk you through what business financing actually means, how it’s commonly used, and how a finance broker can help you find the best fit without the faff.
What is business financing?
Put simply, business financing is how a business raises money to support its goals. That could be to help with launching a new venture, managing day-to-day cashflow, buying equipment or stock, expanding into new premises, hiring staff, or even investing in or developing property.
Rather than dipping into personal savings or waiting until you’ve built up enough profit, financing allows you to move forward now, with repayment structured over time in a way that suits your business.
There are many types of finance available to suit different needs. Business loans offer borrowed money repaid over an agreed term, often with fixed monthly payments. Cashflow loans provide short-term support to help cover the gap between paying suppliers and getting paid yourself. Asset finance is used to buy or lease specific equipment such as vehicles or machinery. Invoice finance can release funds tied up in unpaid invoices. Property finance supports investment or development projects. And for brand-new ventures, startup funding gives you the boost needed to get things moving.
How do businesses use financing?
No two businesses are the same, and neither are their reasons for needing finance. A local café might need help covering seasonal dips in trade, while a tradesperson may need new tools or a van to take on more work. A property investment company might be looking to fund their next development or investment project. Regardless of the sector, business financing plays a vital role in helping businesses not only survive but grow.
It’s worth noting that finance isn’t just there for when times are tough. It’s often used to support exciting developments like expanding a team, launching a marketing campaign, or upgrading your systems. It can also give you the confidence to take on larger contracts or push into new markets. Financing can help you plan for the long term and ensure your business has the cash it needs to operate smoothly, especially when income and outgoings don’t quite align.
Where does a finance broker come in?
With so many finance options on the market and each lender offering different terms and conditions, it can be a real challenge to figure out what’s best for your business. That’s where a finance broker comes in.
A broker acts as your guide through the financial maze. They’ll take the time to get to know your business and what you’re trying to achieve. From there, they’ll search the market to find the most suitable finance options available, based on your circumstances. Importantly, they’ll explain everything in plain English – no confusing terminology, just clear advice. And when it’s time to apply, they’ll be by your side to help with the paperwork and make sure everything runs smoothly.
Whether you’re looking to manage short-term cashflow, invest in a property project, or secure startup funding, a finance broker’s role is to connect you with the right solution.
The benefits of working with a broker
Working with a broker means you get access to a much wider range of lenders than if you simply walked into your local bank. They offer unbiased advice based on your needs, not the products of a single provider. They can also help you prepare for things like credit checks and documentation, which often makes the application process quicker and smoother. What’s more, your chances of being approved can be higher with a broker on board, as they’ll match you with lenders who are most likely to say yes.
Best of all, many brokers only get paid when they successfully arrange finance for you – so it’s in their best interest to find you a solution that truly works.
Ready to explore your options?
At South West Business Finance, we believe business owners deserve finance that works as hard as they do. We’ll help you understand your options, cut through the jargon, and access tailored solutions that support your success.
Whether you need help financing cash flow, borrowing for business, or exploring finance for business loans, we’re here to guide you every step of the way.
Speak to one of our friendly team today and see how business finance could help your business thrive.