In an ideal world, opportunities to expand your operations would present themselves when you had sufficient cash flow to procure assets that are needed to accommodate this growth. However, the tough reality of running a business is that this will seldom happen. Growth opportunities will come through at any point in time and you sometimes have to let them pass you by as you are unable to buy assets demanded by your growing operations. Constantly giving up opportunities can be bad for business as they are naturally going to go to your competitors, who may eventually push you out of business as they increase their market share.
So, what options are realistically open to a business owner looking to grow their business without sufficient cash flow? Among the many finance options available in the market, asset finance is the best option for a business owner in this position. Unlike other finance options, asset finance products are designed specifically to help a business acquire assets it may need for its expansion without placing an overwhelming strain on its cash flow. As a business owner you get the assets you need to expand your business operations in an easy and convenient manner that does not affect other areas of your operations.
Why Asset Finance?
If you are not sure as to whether you should actually go for asset finance or some other financing option such as a bank overdraft or another type of loan, here are four points that will make it easier for you to decide on what is best for your business.
- Asset finance is designed specifically for the procurement of assets that will help businesses grow without compromising their cash flows. While there are many other ways you could raise funds to buy assets, none of the other options are designed for this purpose. This means you will end up facing challenges such as high interest, larger installments, insufficient financing and much more.
- Asset financing products are not as restrictive as other finance options. While some finance products restrict the type of purchases you can make, asset finance providers are more flexible on the items and volumes that a business can procure.
- Asset financing hastens the procurement process. Suppliers will often process orders faster when payment is guaranteed. Having your assets financed by a reliable provider will ensure that your orders are prioritised and processed faster. Assets delivered in good time = timely production = timely supply to clients = happy clients = good business = further growth.
- Working with an asset finance provider allows access to free expert advice. Through the course of their work, the people working for asset finance providers collect lots of valuable information and experiences. You will get this really good procurement advice from these experts at no charge. Tips and ideas such as where to buy cheaper products, tax breaks available on certain items, international procedures and where to find local partners who work with international suppliers could save your business thousands of pounds.
To find out more about how invoice finance can help your organisation to raise working capital, call us now on 01993 706403.