With Christmas fast approaching, we’re seeing a lot more businesses enquiring about leasing and loans to support their business. From covering energy bills this winter to looking to expand for Christmas bookings, there are many different motives for a company to come to JR.
Here are 5 of the most common reasons we see businesses coming to us for financial support:
New-start business
Everyone has to start somewhere! One of the most common reasons for acquiring finance is to support businesses that are just starting up. While some owners find themselves in the position to use their own funds, most owners don’t have the capacity to self-fund their new business and therefore seek external funding. Whether it is a loan for cash flow maintenance or marketing costs, or a lease to help with purchasing equipment, there are plenty of options available to new start businesses.
Expansion funding
Many owners will reach a point in their business where they are ready to take things to the next level. This could be in many ways, whether it is the need to take on more staff, move to a bigger premises or even to upgrade your existing assets, finance can be used to facilitate business growth. Let your expansion pay for itself, owners know that holding their cash in the current market is the smart decision whilst also being able to easily plan budgets through the use of fixed monthly repayments.
Tax covering
This has always been a common thing we have assisted with in terms of funding VAT bills and utility bills. But after the news that Corporation tax will be rising to 25% next year, we have seen a significant influx of business owners wanting to acquire a loan in order to prepare for this increase in business tax. With outgoings like utilities and VAT not going away themselves, businesses feeling the squeeze now or preparing for one in the coming months are starting to look elsewhere to keep their business afloat.
For some expert advice on your company’s taxes, check out Tax Assist, a trusted partner of JR.
Asset Purchase
One simple way of increasing sales and generating more revenue is through the purchase of assets such as machinery or vehicles. Even if the business has enough cash to cover the working capital expenses, most will look towards a loan in order to spread the cost of an expensive new piece of kit, whilst simultaneously being kind to their cash flow. It’s important to have the best equipment for your customers and finance is a great way of making this possible.
Launching new products/services
18% of small business confess that lack of financial support results in them shelving plans to launch new products. Finance can help unlock and support these plans. A loan can help to cater to an increase in costs or a lease could assist with the installation of high quality equipment that would allow your business to provide new services to your customers.
So there are some of the most common reasons why we see businesses apply for finance. Now it’s time for you to turn your business “ideas” into “reality”.
Explore what JR can do for you here.
