Phil MeekinView Profile
The banks will still support businesses, but only the strongest and fittest in financial terms. In the current economic climate, those are few and far between.
In the past the answer was fairly simple – pick up the phone to your bank manager. If he or she couldn’t help there were “secondary lenders” who could often support you – but at a cost.
The banks will still support businesses, but only the strongest and fittest in financial terms. In the current economic climate, those are few and far between. The secondary lenders were largely funded by banks – their funding has disappeared and they’re no longer active. There are still bridging lenders who will provide high-cost , short-term loans. These are usually secured by property but they will expect around 2% per month. That may be an answer if you need to complete a lucrative contract and there is sufficient profit margin to absorb those borrowing costs.
The debtor finance industry is very active. What was once considered to be almost a lender of last resort, have become “mainstream” in the current climate. It is not suited to all industries or situations but does fulfil the needs of many companies operating in the business-to-business market who supply goods and services on credit. It is ideal for expanding businesses as the facilities tend to grow with the level of sales.
If you have tried these sources without success there are other alternatives rather than just watching your business disappear. There are various procedures which a firm of Licensed Insolvency Practitioners can organise which may enable your business not only to survive but possibly even resulting in it coming out of recession stronger and fitter.
Where the core business is sound but the company has had its cash depleted as a consequence of say a bad debt and /or falling sales, there may be private investors prepared to become involved. This may involve restructuring your company.