How to finance a business emergency

When a business is suffering from hard times, or struggling to even keep trading, it shouldn’t mean the end is near — far from it. There are plenty of options for businesses that have hit a rocky patch, and this includes emergency business finance solutions which are tailored for these exact situations.

A cash injection from a quick business loan can help you cover an unexpected cost in a hurry, or take on an exciting new project. Whatever you need the cash for, we work with dozens of lenders who can turn around a finance application within hours.

With tough decisions to make every day, finance is one you really shouldn’t take lightly — so here’s our guide on what to consider when your business has encountered financial difficulties.

Cashflow shortage?

Even the most savvy of business owners may not know the array of finance options available in the current market, and since high-street lenders have slowed down their lending to SMEs over the last few years, we’ve seen a large amount of alternative finance appearing to fill this void.

With a number of cash flow solutions available, the right option for your business all depends on your business profile and needs. To fully understand where your best solution lies, speak to one of our experts — we’ll guide you through your possibilities.

There are lots of types of lending available to ease cashflow woes – options like invoice finance and merchant cash advances are popular choices for many types of businesses.

Seasonal trading problems?

When sales are down and costs are high, there are potential problems waiting to arise at any moment. Keep this in mind if your business has unpredictable trading cycles, or if you frequently find you’re struggling for cash at important times. For the more urgent problems like insolvency, there are some relatively unknown emergency solutions.

There are of course certain criteria to satisfy, but if your business stacks up, it’s well worth considering. A simple business loan might do the trick, or maybe it's worth looking into asset-backed finance for a more individual fit.

In debt or operating at a loss?

We would always suggest taking a look at finance solutions in these cases, as there are products and lenders in the market set up to cater for almost every need. You might find a lender who’ll take your assets as security for funding — the risk being that you could lose your equipment or machinery if you’re unable to adhere to your loan terms.

Are your circumstances beyond control?

Once you’ve exhausted all of your finance options and feel there is nowhere left to go, you’ve reached a hugely important time for your business. This is the point at which you need to decide whether continuing to trade is a viable option for you personally, as well as for the business. The key to this is spotting these difficulties and reacting — the earlier, the better.

Although they come with negative connotations, a company voluntary arrangement (CVA) or a pre-pack administration may well be an option if you think there’s life left in your company. There are plenty of options to weigh up, but if you think the business may continue to incur more debt if it carries on in the same way, this is when problems can get out of hand.

How to get a quick business loan

If you need cash in a hurry, there are a few things you can do to give yourself the best chance of getting a quick business loan.

Keep your accounts up to date

If your business is a limited company, keeping your filed accounts up to date is really beneficial when it comes to applying for a quick business loan. Up to date accounts show how your business is doing right now, rather than where it was in the past, and give a good overview for lenders looking at your application.

Get your bank statements ready

Almost every lender will want to see the last 3-6 months of bank statements, so it makes sense to get these ready as soon as possible. Ideally you'll have them as PDF files downloaded from your bank — most of the high street banks offer this feature.

If you're a sole trader, keeping separate bank accounts for your business and personal expenses makes it that much easier for a lender to sift through your statements.

It pays to be prepared

One of the biggest factors in how long it takes to get finance is you — if you have your banks statements ready, along with any recently filed accounts and other financials like profit and loss, our team can get your application moving within minutes.

And when we say quick business loan, we mean quick — we recently helped a customer get approved for a loan in just 11 minutes, and regularly get firms the right loan in less than an hour from initial enquiry to money in the bank.

Understand your options

Many business owners in trouble don't realise that there's still some funding options available even if you've got bad credit, a ccj, or other signs of trading problems in the past.

If your business is in an urgent situation, the best thing you can do is manage these problems head-on, as early as possible.

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