The Business Funding and Finance Market is Complex. We Can Help Find the Right Business Finance Solutions
Working capital for many businesses is provided by a funder or a finance provider. The funding market today has changed significantly from the traditional overdraft facilities and business lending facilities offered by the high street banks. The business funding and finance solutions available now are a complex mix of both traditional and non-traditional/alternative business funding.
Our Business Recovery Specialists have the skills and experience to review a business’s existing funding arrangements, and go on to represent the interests of that business when dealing with the funder. This includes the provision of detailed and accurate viability reports and trading forecasts, as well as leading negotiations for on-going support for a business from the funder. We also help find alternative of business finance solutions, if required.
What Problems Can Occur With Business Funding and Financing Arrangements?
Problems can occur if a business does not keep to the existing lending agreement or a funder or finance provider believes that the business it is funding is unable to repay its debt. The problems faced by a business include:
- Frequently exceeding credit terms and struggling to operate within the funding facility
- The high cost of borrowing charges eroding profit margins
- A funder deciding they no longer wish to fund a particular sector and asking a business to move their funding elsewhere
- The funder becoming aware of problems within the business, including CCJ’s that remain unsatisfied and presentation of a Winding up Petition by a creditor
Our Experts Can Help with Business Finance Solutions
All of the above are problems that we are used to dealing with, helping businesses find solutions to their funding and financing problems.
We have in house experts in the traditional business finance markets and also the new and growing alternative business financing market. We can assist in identifying opportunities for businesses to reduce funding costs, improve profitability and enhance cashflow, setting a business free to move forward.
What About Business Funding via a Director’s Loan?
We have assisted on numerous occasions when a Director has decided to lend his/her own money to their business, to replace a funder or to provide a top up to existing funding on a short or medium term basis. If you are about to lend to your own business – which is also an alternative source of business funding – then we will work with you to ensure the same levels of security are in place for you as a bank would take if they were lending to a business. As a lender to the business, you are entitled to take security in the form of a debenture or other charge over the assets (limited companies only), just like a bank would.
In the event things do not work out and the outcome is an insolvency event, this security may help get some or all of your money back (depending on the level and nature of assets in your business) and provide control over the direction the insolvency process might take, particularly where your business is facing recovery action from other creditors.
This is a complex legal area and for any security for a director’s loan to be effective, it has to be put in place correctly and with transparency. If you are thinking about lending to your own business, please contact us or call us to discuss how we can help protect your loan.