The necessary evil
Depending on the sector you operate in, there will be a variety of regular outgoings that are not only a necessary part of the work you do but also inescapable in terms of financial outlay. These obligations allow your business to trade properly in the case of technical subscriptions, maintain necessary compliance through insurances, and keep the HMRC away from the door with regards to Tax and VAT liabilities.
An existing bill is an existing debt.
As companies grow, the numbers increase in many ways. From more personnel requiring infrastructure, to an increase in service provision driving insurance costs up not forgetting the HMRC requiring larger recompense for monies collected through sales. These natural debts that a business will incur as part of its operations can have a huge impact when payment dates overlap or indeed fall at cash-low points within the month, quarter, or year.
Once the horse has bolted…
Failure to pay on time can result in surcharges, withdrawal of service and in the worst case – winding up petitions. There have been instances where we have seen businesses missing one or two payments through no fault of their own (this could be external business disruption, or consultancy error, etc) and then due to the recurring nature, the problem is exacerbated. Escaping these situations usually requires outside funding from family, investors, but most likely – finance houses. Due to the underwriting market finding concern in lapsed creditors as a purpose to fund, remedial facilities are usually expensive or requiring of significant security.
We can be your good practice!
Did you know that for every quarterly and annual bill you pay, engaging us with us in the first instance can help your business prosper. We arrange competitive, unsecured funding lines that flatten your subscriptions, insurance fees and taxes across their respective terms. This puts you in control of the quantity and timing of funds leaving the business. Once you have settled an insurance renewal or a tax obligation using dedicated funding, you can then keep the cash reserves high or alternatively use those cash balances to invest back into the business.
It’s good to talk. Whether you have experience of business financing or not, we can guide you through the process. Spreading tax bills. subscriptions and insurances are prudent strategies that can match obligation to resource allowing cash to work harder for you. Don’t forget to ask your accountant about the tax efficiencies available through using business finance!