Any existing business that managed to survive the worst of the recession and the global financial crisis will have done so by becoming more efficient.
Likewise, companies that started life under the conditions of austerity and reduced consumer spending have already made it clear that they can operate under harsh trading environments.
Small and medium enterprises, or SMEs, are widely acknowledged to be a barometer of a country’s economic health and play an important role in kick-starting a recovery.
With conditions now generally accepted to be improving and commercial growth back on the agenda, the time is right for these kinds of businesses to begin looking at how they can take advantage of a more positive situation.
The idea of expanding a business is at the heart of any commercial activity. Taking on more clients, building a bigger customer base, operating at higher volumes are all aims that mean forward movement to becoming more profitable.
There are more ways than even to expand and grow as the globalisation of commerce via the Internet has now opened up trading opportunities for all kinds of businesses that simply weren’t available before.
Even if a proportion of profits are ploughed back into growing a business, there will almost certainly come a point where extra funds are needed to make plans a reality.
Whether you need funds to buy new equipment, working capital to help with cash flow or simply need to finance taking on extra staff, taking a loan can be the simplest and most cost-effective solution.
For small business loans Peterborough based companies can borrow up to £100,000 through a range of options.
Interest rates of 19%/APR 23.6% (or slightly lower for social enterprises or other not for profit organisations) and repayment options over periods between 6 months and 10 years are available, so planning a practical and affordable schedule is easy and straightforward.
Also with a loan like this there are no penalties for early repayment, so if your expansion plans move forward at a faster pace than you anticipated you’re not locked in to a needlessly expensive long term schedule.
Securing a loan is simple and often involves nothing more than filling in an application form and a business plan online, along with providing a cash flow forecast and the usual ID and address verification documents for all directors or partners. It is important that all of the information you provide is accurate as providing false information could lead to a great deal of trouble later on down the line.
You also need to consider your ability to repay loans that you take to fund business expansion. As with personal loan applications, you should never borrow more than you can realistically expect to repay over the given period. If you start to encounter difficulty with your business loan then it is important that you speak to your lender immediately. Notifying them of a potential issue before you miss a payment can stand you in good stead and help you to reach a compromise that doesn’t result in hefty fees for you!
For more information, this report by the Department for Business, Innovation & Skills on SME’s access to external finance (published January 2012) may help.