Finance Focus

Do you worry about loan repayments in the post-Christmas lull?

Ian Hawkins, Head of Content, Swoop

Many businesses borrow to cover costs in the run up to Christmas. But repaying loans can hurt when income drops. The

ISME Finance Finder can find alternative

solutions.

The fact is, Christmas is the biggest event in the year for many businesses and requires some investment to gain the maximum return. For businesses that are new, or averse to borrowing, this could mean digging into their own pocket to stock the shelves, hire new staff or beef up the marketing. The ISME Finance Finder helps businesses to find alternatives to the standard “borrow now, pay back monthly” loans that are the first resort for many business owners.

Rhys Cunnah, Head of Unsecured and Asset Finance at Swoop, says: “There is more to getting a good deal than simply adding up how much it costs to borrow a set amount. Things that can make the deal sweeter may include interest-only periods, payment holidays, or other finance products that particularly suit your clients’ needs.”

Rhys believes that asset finance is one of the most popular options for businesses looking to refit their premises or acquire expensive new equipment and adds:

“Asset finance gives a business more bang for their buck. They will likely find that the right deal will come with perks such as maintenance or even training for machinery. Having the right tools for the job definitely boosts morale of the staff, and in the middle of a talent shortage, this may be more valuable to employers than a percentage point here or there on the loan cost.”

It is all well and good to repay a loan while the customers are queuing at the cash register, but what happens when income tails off and the new year slump sets in? The ISME Finance Finder has a solution to this problem. It offers a Merchant Cash Advance (MCA) which is one of the most flexible forms of funding and it’s great for businesses that have seasonal variation. You borrow at a fixed cost, and repayments are made as a percentage of sales through your card terminal. MCAs have become increasingly popular as they adapt to the growth and operating pattern of your business. They are also one of the fastest ways for a business to access finance, as in some cases an offer can be made within 24 hours of application. The downside to an MCA is that the flexibility comes at a cost - the business may have to pay more for an MCA than a standard business loan. With many retailers trying to balance a lean online business with a great in-store experience, it makes sense to understand exactly what your options are and how you can borrow smarter. If Christmas is too important a date in your business calendar not to invest in, you need to know where to find the funds required to make the most of the season. Check your options on the ISME Finance

Finder.