Financing your Business
Starting out or growing a new business can be tough. Balancing cash flow, running payroll, and accounting for outlays often means that money can be a precious commodity. Using finance options specifically aimed at businesses can help you set up or expand your enterprise.
What is business finance?
Business finance is a way of borrowing money that specifically targeted towards companies. Whether it’s loans, credit cards, or other financial products, there is a variety of services that fall under the term. There are many instances in which you may need to use such products, such as for covering startup costs, purchasing property, or managing business expenses.
Although managing your business finances works slightly differently from managing your personal finances, there are still plenty of similarities. You don’t want to borrow more than you can pay back, and you don’t want to saddle yourself with high-interest debt.
What types of business finance products are available?
Alongside specific business bank accounts, there are a host of other financial products that companies can take advantage of. We’ve outlined some of the main ones that SMEs encounter:
• Medium and long-term business loans – an excellent way of long-term expansion.
• Financing assets – a cash injection for covering the costs of new business assets.
• Business credit cards – cards designed for business users featuring a variety of features.
• Business energy – suppliers often give different rates to businesses.
• Short-term business loans – ideal for solving cash flow problems or making big purchases.
• Invoice financing – useful for when your money is tied up in unpaid invoices.
• Business insurance – a means of protecting yourself and your business when running it.
• Prepaid business cards – a useful way of managing business expenses
Each of these has its own role to play and, depending on the type of company you run, you may need to make use of some or all of these services.
How do I choose the right type of business finance?
At Numo, we try to make sure that our readers have as much information as possible about the various commercial financial products out there. This makes it easier to compare services to make an informed decision. We also make sure that our reviews are impartial and informative; giving you everything you need to choose the products that are right for you.
As with any financial decision, it’s important to first assess your business needs before choosing a type of finance. Look at what you need the service or money for and consider how is best to implement it. Next, look at a variety of providers on offer. Come up with a shortlist of products and compare the pros and cons of each. From here, you’ll be able to choose the business finance that’s best suited to your needs.