Three questions to ask yourself before seeking business finance
Successful retailers are measured by their stability, not necessarily profitability. A good retailer will know how to use a business advice service to grow and solve their challenges and this includes identifying the right financing solution.
- How much finance do I need and when can I realistically pay it back?
- To allow a better cash flow, it is usually best to acquire short-term finance deals that you can afford. This means the amount to be paid back is fixed for the entire term.
- How responsive do you need the contact for your finance to be?
- With short-term finance companies, you can get an actual person as your main point of contact, compared to banks, who will likely have large customer service departments.
- Is financing the right choice?
- A business loan is not the solution for every business. If your business is new and cash flow is not stable, a short-term finance deal will not be the right move. Or if your business needs a bigger investment, you will likely want to secure a bank loan due to the lower interest and better payment terms.
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