Business Finance and Funding Advice Service

Written by Keith Tully

Are you experiencing problems meeting your day to day expenses or paying bills on time? Real Business Rescue may be able to help you find the finance and funding you need to turn a profit. 

Real Business Rescue understands the need for businesses in the UK to raise operating capital for a number of reasons. Sometimes the company is on the verge of becoming insolvent and other times there is a real need to grow but the company simply lacks the initial investment to add a product or service to an existing business plan. There are many approaches to business financing through loans and funding which can be pursued to help raise the money necessary for long or short term needs. Our finance advice service can help you explore viable options to raise capital as quickly and efficiently as possible. Here are just a few of the many ways in which a business can acquire funding and/or financing.

Factoring and Invoice Discounting

Often a company that is already insolvent or soon to be so is in this position because of accounts which have gone delinquent. Realising that other businesses may also be struggling doesn’t help you collect on invoices which are yet unpaid. Two of the many options for raising money quickly are invoice factoring or invoice discounting. Both are, in simple terms, loans made to your company based on your books but one is more visible than the other. Invoice factoring will provide a loan in which the factoring lender literally takes over your books and collects on debts whilst invoice discounting allows you to keep control of your books. Either avenue will provide money based on accounts receivable, but discounting will allow you to remain under the radar whilst procuring a loan. Your clients never need to know you needed financing.

Loans and Funding for Businesses in the UK

Finding bank loans and/or funding for a struggling company may not be easy to do. Rates will be phenomenally high as lenders are afraid of losing their investment. However, banks are not the only lenders that provide small business loans so seeking advice is in your best interest. This is a tricky subject because many subprime (second-chance, near-prime, non-prime) lenders have earned a great deal of criticism in the industry for the rates and payback schemes they promote.

Even so, there are reputable lenders who are willing to deal with a company that can show past viability along with the potential for future profits. Dealing with small business loans is where the average SME in the UK needs to seek help and advice. From procuring a loan from a bank to advice regarding business angels, Real Business Rescue can help you understand the options available for your business with its unique set of requirements.

Business Debt Consolidation Loans

At Real Business Rescue, one of the first things we will look at is the kind of debt you have. Some of it may be due to HMRC whilst some of your suppliers may have gone unpaid for a time. Whilst your company may have several credit cards and other high interest loans, you may also be paying a mortgage at a much lower rate. It is possible to consolidate debt by refinancing a mortgage to pay off all or some of those higher interest loans. This is something we will necessarily take a look at even though your company will still owe the same total amount. The bottom line is that debt consolidation could save hundreds of pounds each month in interest rates and service fees alone.

Small Business Government Grants

Here is another area in which there is a potential to find money to start or grow a business. Unfortunately, there are a great number of different types of small business government grants which is why advice is always a good idea. Some are better than others for different industries and some may not even be available to the type of business you operate. Real Business Rescue can help you sort through potential government grants to see if any are viable options. Different types of government grants and funding would include:

• Direct Grants
• Soft Loans
• Repayable Grants
• Equity Finance
• Best Practice Transfers
• Technology Transfers
• Subsidised or Free Consultancies
• Resource Access

These are just some of the types of funding, financing and support offered through government grants and initiatives. Be aware of the fact that some need to be repaid whilst others are ‘free money.’ For example, a repayable grant would need to be repaid according to the terms of the grant but if the endeavour fails, repayment is not required. Since there are so many types of grants available, Real Business Rescue can help you determine if your business qualifies for any available government funding.

Floating Your Company

According to Government, floating a company is a great way to raise venture capital whilst promoting a business on the open
market. This is where shares are sold and a great way to gain exposure. By joining one of the stock markets in the UK, your company becomes ‘public’ which is a great way to become visible. Sometimes this is all it takes to attract venture capital, even if your company is technically insolvent at the moment. However, be aware of the fact that floating a company does come along with some costs which need to be considered and it may not be the best option for you. The Real Business Rescue team are highly skilled Insolvency Practitioners, including legal experts and solicitors.

Asset Finance for Short Term Loans

When a company is in need of a quick loan, asset finance can be an expedient route to take. In the past, invoice factoring and invoice discounting were the main types of loans under the broad umbrella of asset finance. However, in recent years more and more companies are borrowing quick, short term loans against inventory or other assets to increase cash flow over the short term. Where invoice factoring and discounting are loans against the books, asset finance can be inclusive of securing a loan with company assets as collateral such as accounts receivable.

Completing Orders and Shipments with Trade Finance

One of the problems which many industries face is in not having sufficient credit established to order goods necessary to complete an order. For example, a manufacturing company may rely on components as an integral part of the finished product. If there is insufficient credit with the supplier and no cash on hand to order the necessary parts, trade finance enables those parts to be ordered and paid for by the trade financing company. Credit is established with the financier as opposed to credit directly with the supplier. Trade finance is a strategy many companies in the manufacturing industry have utilised to satisfy large orders.

Real Expectations from Real Business Rescue

Although Real Business Rescue set out to help save companies about to go bust, we recognise that finance and funding is
integral to running a company. Even if your company is not in need of rescue but would like to foster growth, funding and finance alternatives can provide the capital your business needs. In other words, we are not only here to give advice on financing for insolvent companies and those in distress, but we can offer funding solutions to help you grow your business as well. Since finance is such a huge portion of saving businesses in the UK, we have made it our job to help our clients discover innovative ways to get the financing they need.

Government wants your business to succeed because the stability of the economy depends on small to medium sized enterprises. As a result, licensed Insolvency Practitioners can offer help and advice on anything from financing to liquidation. If you are intent on saving or growing your company, the Real Business Rescue team is on hand to offer assistance. The initial consultation is free of charge so there are no worries there. Simply give us a call and let us help you find the answers to your financial concerns.

Author: Keith Tully

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