Before you begin to decide on finance products and options, it is essential to identify exactly why you need finance and what type of business you are. This enables you to create clear objectives that can help lenders understand why finance for your business is important and reasonable.

What do you need finance for?

Why do you need the finance and what are you looking to fund? There are so many different reasons a business may need finance. However, there is often a different product for every single one and most of them fall into these general areas:

You want to expand. Expanding your business is not just about bigger premises, a new property, or a revamp. It can also range from new equipment or staff, funding a marketing campaign to drive more sales, or diversifying your offering.

Putting stock on the floor. If you are about to have a busy period, you will need sufficient inventory. This requires you to purchase the inventory before you can sell it and generate the income. The right finance will ensure you are prepared.

Keeping up cash flow. It is beyond a simple a cash injection. You might require finance for equipment or inventory to preserve the funds you already have in the bank. You may even get finance based on the invoices you have already sent to clients.