There’s nothing more liberating than the notion of ditching the 9 to 5 rat race and going into business for yourself. For those who have the imagination, ingenuity, passion and dedication the digital age has made it easier than ever for savvy entrepreneurs to carve out their niche in the market and find the right target audience for their products and services.
Unfortunately, even a modest business requires capital to cover the inevitable overheads. Whether you need to secure the cash to start up a business or to make the kinds of prudent investment that will enable it to grow, it can be extraordinarily frustrating when your finding application is denied by a bank. You could be forgiven for thinking that your nascent business is up in smoke, but banks are not the kingmakers that they once were.
There are more options than ever to secure business finance, so long as you’re cognizant of the interest rates and factor them into your monthly cash flow. Getting the cold shoulder from the bank can surely be an obstacle, but it’s one that should be overcome, not allowed to dampen your ambitions…
Just Because The Bank Says No Doesn’t Mean Your Business Plan Is Flawed
Remember that it’s in a bank’s nature to be risk averse and there are many factors that may influence their decision which have nothing to do with the efficacy of your business plan. The deregulated financial services sector led to one of the worst recessions in modern times back in 2007-2008 so it’s little surprise in the wake of the financial crisis that banks are gun shy when it comes to any kind of lending.
Bank Referral Scheme
The great news is that if you’re a UK entrepreneurs, a bank that rejects your application for business funding is legally obliged to help you to find an alternative funding option under the Small Business Enterprise and Employment Act of 2015. This piece of legislation was designed to stimulate economic growth by giving small businesses a helping hand and making entrepreneurship an accessible and realistic option for people of all backgrounds.
Startup funding is by far the toughest nut to crack when you don’t have a proven track record of running your own business. Fortunately, there is a range of UK business loans on the market at interest rates that are reasonable to nascent businesses. There are also numerous options outside of commercial loans including;
Cash Flow And Development
When your business is up and running it will need to maintain a healthy cash flow in order to maintain liquid funds. Liquidity is extremely important as it will enable you to make the capital investments that can improve productivity and facilitate growth. Again, there are a range of funding options available without having to set foot inside a bank. Many alternative lenders offer bridging loans, cash flow funding, development loans, unsecured business loans, invoice discounting and commercial mortgages. So long as you can demonstrate consistent revenues and the ability to repay credit the sky really is the limit!
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