Debt – It is a Business Resource
Creating a Strategic Plan involves, amongst other things, understanding your business resources, and determining the best way to utilise them to return a profit.
So what about DEBT?
Your borrowing capacity, or the amount of money that your business can access on credit, is a resource that should be used.
You need to ensure, however, that you use the right type of funding, and in a way that is going to add value to your business.
With the huge number of new entrants to the commercial lending market over recent years, most businesses have more access to funding than they realise.
Traditionally, business lending is secured by an asset, however there are significantly more options in the unsecured lending space, at very reasonable rates, than we have ever seen.
From lines of credit, short-term loans, overdrafts, equipment leases, debtor financing, trade finance and other industry specific or tailored solutions, there are options for most businesses.
Even those in financial distress.
So, what can you do to make sure you don’t miss out –
– get your business accounts in order (tidy up the financial statements and ensure that the figures are accurate)
– create a cash flow forecast spreadsheet (even if it doesn’t look great, take the time to prepare one)
– update your Strategic Plan & Operational Plans (or create them from scratch; they aren’t as difficult as you think)
– consider your business risks and document a mitigation strategy
Don’t have these documents prepared??
Don’t let this stand in the way of using a cash injection to propel your business forward.
Professional help isn’t far away.
