If your business is struggling to pay its current liabilities due to slow cash flow or an excessive amount of cash tied up in fixed assets, refinancing can provide the liquidity you need to trade efficiently and bring an end to any legal pressure you currently face from creditors.
A large range of financing options are available for businesses under financial pressure. These include asset refinancing, business lines of credit, invoice discounting and/or factoring, venture capital and more.
If your business is facing cash flow difficulties, contact us. We work with a range of refinancing providers and can help you learn more about the options that are available for increasing your business’s capital and improving cash flow.
Debt refinancing is a process that involves reorganising your business’s financial obligations so that your business has the working capital it needs to pay its creditors, avoid financial pressure and trade efficiently.
Refinancing is commonly referred to as capital release. This form of refinancing involves using your business’s existing assets to release equity and raise capital.
There are numerous reasons for a business to use refinancing. Your business may have a large portion of its asset value tied up its fixed assets, such as equipment and real estate, affecting its amount of operating capital.
In certain cases, a business might turn to refinancing after a financial setback, such as the loss of a key source of revenue, excessive bad debts, a major business disruption or any other type of event that affects its day-to-day cash flow and access to capital.
Refinancing offers a range of advantages, both on its own and when compared to other options for raising capital. The major advantages of refinancing include:
As with other business financing options, refinancing also has certain disadvantages. The major disadvantages of refinancing include:
Refinancing is a good option for businesses that are distressed but financially viable, meaning they currently face financial pressure but still have the potential to trade successfully.
In order to use refinancing, your business will typically need to meet certain criteria. The vast majority of refinancing providers will want to work with a business that:
In addition to asset refinancing, a range of other options are available to help raise capital and improve your business’s cash flow. Some of these solutions use your existing cash flow, while others are loans and cash advances designed to provide instant capital for your business:
There’s no ideal form of financing for every business. Depending on your business’s cash flow, assets and current liabilities, one or several of the financing options listed above may offer the best range of advantage for your current needs.
If your business needs to raise capital to pay its creditors, purchase new assets or just to have more liquidity available for operations, refinancing is an efficient option that can help you to get the cash you need quickly.
As specialists in business recovery, we’ve helped hundreds of UK businesses use refinancing to deal with creditor pressure, fund new equipment or inventory purchases and facilitate long-term turnarounds. Based on your needs, we can connect you with a trusted refinancing partner.
For more information, advice and to learn about the refinancing solutions that may be available for your business, please contact us now on 0800 9717185 or via email to schedule your free private consultation.
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