5 ways to secure Replacement business finance when time is short

notice_is_hereby_givenWhat do you do when you need to find replacement business finance – fast?

Have you been given notice by your finance provider?

Is your finance provider reducing your finance facilities?

Do you need replacement invoice discounting?

Is the bank carrying out more regular audits?

Has the bank instigated an Independent Business Review?

If any or all of the above are the case you will be very aware that the relationship is not as it once was and that you need to find a new finance provider very quickly or run the risk of losing your business.

Here are the 5 key things you should do to avoid this:

1. Speak to an expert and take the pressure away from yourself.

Not someone who knows a few other banks, but someone who understands alternative funding solutions, has relationships with ALL the finance providers and most importantly can take the pressure off you.  Contrary to what we are constantly reading in the press there is a lot of money available from a variety of sources just wanting a reasonable return.  You just need to know where to look and how to present the business case.  There will be altenative finance options available to you

2. Be prepared

Don’t leave it to the last minute.  As soon as you realise there is a problem looming with your business finance strategy ACT FAST.  If you do this it minimises the stress involved in changing finance provider and means you are less likely to make the wrong decision.  We have recently acted for a client who realised early on that the relationship with their existing finance provider had broken down and they called us to seek alternative funding options.  Whilst the clock was ticking we had the time to put a number of alternatives in front of our client and they were able to successfully replace the existing facility.

3. Make sure your business strategy is bullet proof

If you are contemplating any turnaround strategy advice or seeking to implement any business improvement strategies – do it now!  This will illustrate to any potential provider of the replacement business finance that you have been proactive and acted to deal with any potential issues.  Make sure you have all the answers.

4. Try to give yourself options

If you need a replacement bank or replacement invoice finance facility, demand of your advisor that they speak to more than one potential provider.  It is very important in any negotiation to have options such that you can make a sensible business decision based on as much information as possible.

5. Negotiate a pain (fee) free exit

If your existing provider of business finance is making things difficult but they haven’t given notice on the facility, ask your advisor to negotiate a structured exit with either reduced or no termination fees.

I believe the most important skill you can have in business is to recognise the gaps in your business knowledge.  To embrace these gaps and fill them with information and advice from experienced and trusted sources is not a weakness; it is a massive strength.

How can anyone in business expect to know all of the funding providers and options available in the market place when it is not the core of their business?

Finding alternative funding

If the continuing lack of availability of funding is affecting your business, please contact us.  We are specialists in this field and can hopefully point you in the right direction.

As always, if you have any comments or any of your own experience you would like to share on this subject, please contact me at john.thompson@transcapital.co.uk or on 0845 689 8750.

Image by: Mark Hooper