Three questions to ask yourself before seeking business finance

business finance
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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.

When seeking business capital there are several options available to shop owners. Financial solutions for you include bank loans, but these may require you to risk your personal assets. Alternatively, there are companies offering unsecure business loans - also referred to as merchant cash advance or royalty investments.

Having worked across several of those products, including in my current role as director of marketing for Yalber, I have learned that, for the most part, these products are similar to one another.

Whichever method you use, there are three questions you should consider before looking for loans and signing the contract:

  1. 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.
  2. 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.
  3. 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.

Retailers should shop around to get the best offer for their needs. Knowing the right tools, services and products for your store’s success is key.

By Kobi Ben-Meir, Marketing Director

If you are interested in finding out more please contact Got Capital on 0800 368 9695 or visit

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