3 Ways To Finance Your Business During The Credit Crunch

Most people have been affected in one way or another from the recession and the effects of the
credit crunch. Although we are told that the worst is over, the recovery time is slow and painful, with many smaller businesses folding under the financial pressure.

For some companies, it is simply a matter of funding. If there was finance, the company would
probably be able to fund plans for growth and expansion.

Traditional bank lending is not what it used to be; banks are far stricter with their terms and only 40% of SMEs that apply for loans are receiving them. However, there may still be hope for those that get rejected.

Financing Your Business Method 1

A merchant cash advance is one type of lending which has grown more popular over the past couple of years. Essentially the loan is not a loan at all but actually an advance, enabling you to gain a lump sum based on your future sales.

This is paid back from a percentage of your customers future credit and debit card transactions. The small business cash advance is ideal for any company that processes credit and debit card transactions regularly.

The loan could be anything from £3500 to £150000 and could be used for a whole host of company improvements such as opening a new store, expanding a stock range, or to improve marketing and advertising efforts.

Many SMEs have benefited from this type of lending as it is both flexible and easier to repay due to having no fixed monthly repayments. You can find this type of business finance online.

Financing Your Business Method 2

You could try applying for a grant. There are many grants available for various items which your
business may be eligible for.

For example, if you want to make your business more eco friendly to help cut fuel and utility costs, there is funding available for this. You might have to do a bit of searching to find it, but some businesses have been lucky and gained a lump sum for their projects through the authorities.

Financing Your Business Method 2

Try trading online. Many smaller companies are finding that by shutting down physical premises and operating solely online, a lot of money can be saved and gained! The spare cash not used to pay for rent can be used to fund marketing or advertising plans or to take your business oversees (which is easier when you operate on the internet!)