How Flexible Funding Can Make Your Business Resilient
Is your business able to do whatever it wants, whenever it wants, without resulting in an immediate or future financially negative position? When a major business need suddenly arises, does your company have access to funds that can quickly meet that need? Having financial flexibility makes your business resilient to an unexpected crisis and enables you to take advantage of profitable opportunities. Let’s draw attention to some of the benefits that business funding can provide and how to achieve financial flexibility.
Benefits of Financial Flexibility
Financial flexibility may mean different things to different people, but many can agree that it brings peace of mind and a greater sense of security.
1. Responsiveness
Financial flexibility enables your company to rapidly respond to situations as you can make quick decisions. This can sometimes mean the difference between your business becoming extinct and grabbing market share.
2. Stability
It is difficult to plan for future opportunities without financial flexibility as you are too busy focusing on present ones. When you don’t have to worry about future debt, you can concentrate on growth and sustainability.
3. Adaptability
With financial flexibility comes greater adaptability as businesses are able to evolve and pivot more quickly. The process is more fluid, and you can spend less but make your finances do more.
4. Focus
When you have financial flexibility, you don’t have to spend so much time working out the best way to fund a business decision, and more energy can be put into creativity, innovation, and achievement.
5. Volatility
When cash flow is tight, there is a tendency for more questions about how projects will be financed, causing uncertainty for leaders. When a company has financial flexibility, there tends to be a greater sense of calm and less volatility.
How To Achieve Financial Flexibility?
Financial flexibility may sound like a dream that is out of reach, but there are some practical steps you can take to help you get there.
1. Reinvest profits
It can be tempting to reward hard work with salary increases and bonuses when your company is still fresh, but this tactic will soon leave you high and dry. You may see that the company has grown, but your cash reserves will remain low, creating an imbalance and falling profits. Invest a large proportion of your profits into paying down debt to improve future cash flow or create an emergency fund to create a sustainable business model that provides greater financial benefit for years to come.
2. Develop a budget
Know where your money needs to go by developing a detailed budget. A good budget maximizes your revenue, reduces your expenses, and puts you in a position to invest in ways that can make your business flourish. Beware of expense creep, which begins slowly with small expenses here and there, but soon grows far beyond your initial budget. Although a budget can fluctuate, don’t allow expenses to snowball by planning ahead and taking charge. Doing this will ensure a healthy profit margin with enhanced flexibility.
3. Maximize your revenue streams
When a financial crisis hits, the brands that survive are those that have flexible business models with diverse streams of revenue. By providing value to a wide customer demographic and multiple segments, you can ready your business for any storm and ensure maximum flexibility.
How Business Funding Can Help To Survive The Business?
Business funding is a powerful tool that provides financial flexibility and improves cash flow. However, incurring debt to spend on depreciating assets will only halt cash flow and cripple your ability to react to a crisis. So, you need to be strategic with which type of financing you consider so that you aren’t paying interest on funds that aren’t needed. With a finance company like MarketFinance, you can get business funding that helps you make progress by unlocking finance.
1. Business loan
A business loan can help to fund growth by providing access to £10,000 – £500,000 to start your next project by growing your team or upgrading your equipment. MarketFinance allows you to make repayments over 1-5 years with interest rates from 5.49%. As well as being able to get an answer to your application within 24 hours, you can also access the funds within an hour once you have signed up.
2. Recovery loan
The Recovery Loan Scheme (RLS) is a government-backed initiative that can help you bounce back after the trauma of the pandemic by enabling you to borrow up to £350,000. With repayment terms from 4 to 6 years and an arrangement fee of no more than 4%, this option enables businesses to access cash when they are unable to get better terms from a commercial loan.
3. Flex loan
A Flex Loan provides you with access to up to £100,000 that can be utilized as needed and repaired and reused as best suits your business. MarketFinance provides a useful calculator to help you estimate how much your business needs without going beyond your means. With transparent costs, you only get charged for the amount you use, and fees start from as little as 1.4%. With no charge for early repaying and no setup fees, this option is a no-brainer as long as you are able to wait a few days for the funds, which can be accessed within 14 days.
4. Invoice finance
When you have outstanding invoices, managing cash flow can be difficult, but with Invoice Finance from MarketFinance, you can bridge the gap by getting advanced funds to cover unexpected costs and access flexible working capital. Whether it’s a one-off requirement or a seasonal need, you can subscribe to a monthly or annual option that best suits your business. This finance opportunity is great for companies that need to pay their creditors quickly but have longer payment terms for their debtors.
5. Embedded finance
With Embedded Finance, you can offer your customers and suppliers a variety of payment options at checkout while taking away the headache of onboarding, authentication, and fraud-checking. This option even enables teams to take secure payments using their mobile device while out at the customer’s premises.
Conclusion
Your company is more likely to enjoy long-term success if you can maintain financial flexibility. While it is important to think of the future, you can give your business a solid foundation by focusing on the present. Financial flexibility allows you to do both, enabling you to make smart choices that promote growth without passing up lucrative opportunities for lack of cash flow. Furthermore, with business finance to fall back on, you can provide your business with peace of mind that progress can be made regardless of any negative economic conditions.
