Business Finance

Finance for a start-up
For a startup company with no trading business or cash flow it is important to have a good business plan. Try to have an accurate cash flow forecast and implement a good exit strategy. Lenders want to see what you would have in place if things don’t go to plan.

Finance for quick cash flow
Similar to a line of credit, a business overdraft can be drawn down to a certain limit, but is specifically a commercial loan that is priced accordingly. A great option for those unspecified cash flow requirements that go with owning a business.

Finance for expansion or investment
Aimed at funding long-term investments, term loans are ideal for business expansion. They are fully drawn advances for a fixed length of time with scheduled repayments. Normally secured against a valuable asset, term loans are commonly used for purchasing new equipment or moving to larger premises.

There is also the option of lease finance for those who require equipment upgrade. Lease finance is typically used for office equipment, photocopiers and such that you don’t need to ultimately own because it gets superseded.

Financing, rather than buying outright, enables businesses to take advantage of two key benefits: greater control of cash flow and working capital, as well as various tax benefits.

There are many different types of finance, each offering different tax benefits.

A business owner may have the opportunity to claim various tax deductions, such as rental payments, interest payments and depreciation, thus minimising the amount of tax payable.

Expert tax advice is strongly recommended