BUSINESS CAPITAL
? T X E N ’S T A H W , S S E C C U S IG SO YOU’REssAthB rough funding
Growing your busine
I
n my opinion, growing a business has never really been about relying on others – it’s about your ideas, your implementation and you taking the risk. But, of course, without financial support, a sounding board for advice and possibly the outsourcing of some of your core business functions, there is just not enough time in a day, a week or a month to focus on the growth of your business. In fact, today – especially in a tough and more competitive business environment – optimising your working capital to ensure bottom line growth and a cashflush business is critical. Cash flow is the lifeblood of any business, particularly for small and medium businesses. You don’t have massive amounts of cash to fall back on when times get tough or when debtors don’t pay, and what about expanding and growing – where does the funding for this come from?
The good news is that today, it is not just the traditional bank that offers funding. There are alternate lines of credit and funding available to businesses who need a helping hand – businesses that want to expand but can’t seem to find the disposable cash; and businesses that have a great offering with constrained cash flow. It is merely about seeking out the right funder and identifying which solution best works for you. So if your business is in an intermediate growth phase and you’re not ready just yet for a conventional line of credit or you want financing that traditionally yields lower interest rates, for example, then property-backed lending may be the right solution for you.
What’s more, the loan facility can either be structured as a term loan, where the borrowed amount is then repaid in equal instalments over a fixed period of time, or as a revolving loan facility, where an overdraft facility is provided and you service the interest portion of monies borrowed on a monthly basis. It can be tailored to meet your specific requirements, which means that not only do you get the necessary capital, but you have the support and peace of mind. So if you are looking to expand your business, it’s time to consider your options and identify market partners that can help take you to the next level. Get smart about your cash flow – not only will you survive leaner months, but very importantly, you will be able to look at business opportunities and growth areas without being hampered by uncertain flow of working capital. It’s your business on your terms, so make sure you harness the power of being cash flush!
Image: African Business
In fact, world-wide, property-backed lending is growing in popularity as a way for both individuals and businesses to secure short-term credit. In South Africa, it is no different as businesses are realising that they can Consider this scenario: you own a leverage their assets to secure fast and reputable tavern, it’s been in operation flexible credit. With market volatility, for nearly 10 years and you have a well- this is exactly what is needed should established clientele. You’ve considered your business have a cash flow or working capital requirement. renovating the place and perhaps even expanding to include a restaurant area In addition to being seen as an easier for patrons that don’t necessarily want and often quicker way to qualify to drink. But where does the capital for finance, there are also a host of come from?
advantages that property-backed lending provides, including: • Improved liquidity • Higher levels of flexibility • Easier to comply with regulation as there are less covenants • Stepping stone to other products through building a trust relationship with your provider
20
www.spotongmag.co.za
