Can business finance help me grow my business?

Posted by Paul Ryan • 22 April 2014 • Tags:

Romantically we have all had the dream of running our own business. The notion of making money for YOU and your loved ones as opposed to someone else is a comment I hear regularly.

Starting your own business is a challenge. It can be very rewarding yet stressful at the same time, especially when it involves the finances of a new business.

Having enough money in the kitty to help you through the start up phase, seasonal or down times, or simply being able to grow is a key ingredient to building a successful business.

Starting a new business requires a business plan and a finance plan. A business plan is essential to identify what’s required to achieve your vision and a financial plan will help you understand how you need to go about implementing your business plan.

Your financial plan will identify your cash flow requirements. Preserving your cash flow is a key management task and a risk all business owners must mitigate.

Over the past couple of years there has been an emergence of new financiers who have provided competition to the major banks in terms of business finance.

There is so much to learn about the new opportunities available for business finance and it is not always the banks that have the desire to provide you with a solution.

All business owners should seek professional advice on how they can preserve their cash flow or develop funding lines to assist their growth.

In terms of specifics, we can outline a few examples

  • If you operate a cafe and the coffee machine breaks down. Instead of paying cash for the new $5,000 machine that will eat into your savings you can apply for an operating lease and pay the new coffee machine off over 3-5 years. The finance could also include some new coffee beans to help you preserve further cash flow.
  • If you have staff that require a vehicle for work and you are concerned about financing a vehicle while they are still on probation there are now opportunities available where you can obtain short term flexible rentals that still provide the benefits of an operating lease. This can be more cost effective than a three-month rental from a main stream car rental company.

There is so much to learn; finance for scaffolding requirements, financing IT equipment, debtor finance, invoice financing, trade finance, operating leases and asset finance are just many of the terms used for business finance.

Always bear in mind the level of debt, as too much debt in business can cause further stress so accelerate your learning curve and understand the options by speaking to a professional finance manager and adviser.