Ben Day, Director of Business Funding at Cowgills gives his top tips for businesses who are looking at their funding requirements both existing and going forward.

Tip 1. Ask yourself the question whether your business actually needs the funding – currently it isn’t cheap compared to rates even just a year ago. If you can manage without and stretch creditors then why pay finance costs that will eat into your margin!

Tip 2. Prepare a realistic financial forecast. This will tell you whether there is a shortfall and therefore whether you will need funding. It also gives you credibility with underwriters when you are applying for funding. You’d be surprised how few businesses have up to date forecasts.

Tip 3. Explore the market. Gone are the days when you could speak to your bank manager and expect them to come up with a solution. There are so many types of finance available and you need to find the right solution for your business in its current stage of the life cycle.

Tip 4. Don’t be afraid to change lenders. It is now incredibly easy to do this compared to the past. There should be no real disruption to your business if you decide to switch lenders when you find a better deal.

Tip 5. Also, don’t be afraid to change the type of funding you have. As your business grows and evolves, so will your funding requirements, What was right for your business at the outset might not be right now. Explore your options.

Tip 6. It might be that the best solution is to utilise several different types of lending from different lenders. Don’t be restricted in thinking that you have to stick with one lender and one type of finance. There are lots of options out there.

Tip 7. Get several quotes – all lenders have different appetites, so very few operate a one size fits all. It is best to get all options in front of you to then decide which best suits your business and needs.

Tip 8. The cheapest option isn’t always the best. Whilst the cheapest option might look the most attractive, consider what else you want from a funder. The saying that you get what you pay for does sometimes ring true and often the cheaper lenders are cheap for a reason.

Tip 9. If in doubt – ask an expert such as myself. I have access to an extensive market and can dedicate the time to run a process. Using an expert will almost certainly get you a better deal than if you did the process yourself.

If you’d like help with your business funding, or of course any other business advisory or accountancy support, please get in touch with Cowgills today.