5 things to know if you’re considering finance

From speaking to business owners over the past few months, here’s an overview of the trends we’re seeing in business finance and what you need to know for the months ahead.

Businesses are taking finance to grow

Despite the uncertainty of the economy and the prospect of a recession looming, most businesses we’re hearing from are looking to fund their growth. 

While many SMEs were borrowing to get through unpredictable periods or boost cash flow during the pandemic, now there’s a big focus on planning for the future and how they can get a return on their investment. Many are hiring to meet demand, funding a new project, or investing in stock and inventory to grow their revenue. 

Overall there is a really positive mindset in the businesses we’re speaking to, and we’re helping many find opportunities despite the economic climate.  

Think about both short and long term needs

Many businesses borrow for a specific or immediate need. However, finance can also be used to free up time in your business or give you more flexibility. 

A working capital buffer can mean less pressure during more challenging times, while consolidating debt can mean you only have to worry about one simple monthly repayment. Think about your cash flow strategy and where funding could make a difference. 

Find the right product for your needs

It may sound obvious, but choosing the right product for your needs really is key to getting the most out of your finance option. 

If you’re looking to hire staff, launch a big project or invest in marketing for example, a loan can give you the funds needed, along with the security of fixed rates and the flexibility to pay it off early. Whereas if you want a smaller amount or prefer a product you can use regularly on shorter terms, a line of credit might be better suited. 

Identify the key things you’ll be using your extra funds for and what features are most important for you. Our team can help you make sense of the different options we provide Funding Circle, as well as checking if you could get a better quote with our panel of trusted partners.  

Get a quote with no impact on credit score

As a limited company or LLP, you can now get a free, personalised quote without affecting your credit score. This means you can find out what your monthly repayments would be with no risk, and have the chance to assess your options with complete peace of mind. 

Once you’ve got your quote, our friendly team will be more than happy to discuss your business plans with you, too, so you can make an informed decision with confidence. 

Check your credit file before applying

Your credit report will be checked when you apply for a loan, so get a copy of your report and make sure it’s accurate. We use reports from Experian and TransUnion. If you have outstanding debts that can be settled, doing so before you apply could help your application. Healthy cash flow is also beneficial, so consider calling in any due payments too. 

If you’re thinking about taking finance, we’d love to help. Check your eligibility for a loan in 30 seconds, or find out more about FlexiPay, our new rolling line of credit.