Cashflow Funding
Over the last 18 months, many businesses have been given support from the government in the form of grants, loans and tax deferrals.
Many businesses have already begun to repay these loans and HMRC have now began to collect VAT on a regular cycle again, HMRC also allowed a 12 month extension for personal tax liabilities that will be due in January.
These additional payments can have a massive effect on the cashflow of a business and restrict their growth coming out of a pandemic.
However, there are some finance products out there that can help businesses release the cashflow in their business and help them keep doing what they are good at.
Tax Loan
Many businesses and business owners chose to spread the cost of their tax with a short term loan.
This alleviates the need to need to pay out a lump sum and keep cash in the business.
VAT can be spread over 3 months, personal tax over 12 months.
Short term loans can also be used to spread other annual liabilities such as Professional Indemnity Insurance.
Asset Re-finance
If you own assets such as machinery or vehicles you can leverage these assets to raise some cash, a funder will effectively buy the asset off you but allow you to continue to use it.
The re-payments are spread over a set term and once complete the asset ownership is passed to you.
Invoice Finance
This is also known as factoring or discounting, if you supply goods or services to another business and they have payment terms of 30 days or more then factoring can help you get some cash into your business quickly. A funder will essentially buy your invoice off you and advance a percentage to you upfront, when your client pays you will receive the rest of the monies minus a small pre-arranged fee.
If you need any more information on any cashflow finance or any other area of business finance then get in touch via 01925 949000 or mike@real5finance.com
Or call 01925 949000