Business Finance. Help please...

**SarahHoward** · 26-01-10

I have just had a call from my bank who have refused to renew my overdraft facility which my business relies on at various times in the year. Is there an alternative way of financing my business as this will have serious impacts on our chances of staying in business?

**peracto** · 26-01-10

What sort of business are you operating?

KR

Jules

**Cheshire-referrals** · 26-01-10

Originally Posted by peracto

What sort of business are you operating?

KR

Jules

can you not work on orders to value, there are companies who will lend you money agaist orders you have or invoices etc ?

Also How much value was your overdraft as payday loans might be the other way, if your overdraft was £500 and has now been taken away a payday loan or cash advance could lend you that in the same way.

**MissHelpful** · 26-01-10

Afternoon Sarah,

Firstly, and most importantly, you need to understand why the bank has refused to renew the overdraft. Do not despair, there are some alternatives out there. If you have assets, they could be offered as security to raise a loan to inject cash into the business rather than using an overdraft.

Also if your business is owed money from trading you may well be able to raise cash against those debts via some form of factoring. This is where the lender advances you up to say 85% of your book debts at any one time. That way you get an immediate cash injection into your business and continued advances as and when each subsequent invoice is issued. If you have no assets then the latest Government scheme to support business - Enterprise Finance Guarantee (EFG) can be used to raise cashflow. If you have a pension, that pension could also be used to buy the building you are working from which may free any equity you have which you could use to work with. There are many methods of achieving business finance and an independent financial adviser specialising in commercial finance will be able to guide you efficiently through each one.

I hope this helps.

MH

**Commercial-Finance-Network** · 27-01-10

[QUOTE=SarahHoward;577067]I have just had a call from my bank who have refused to renew my overdraft facility which my business relies on at various times in the year. Is there an alternative way of financing my business as this will have serious impacts on our chances of staying in business?[

**Commercial-Finance-Network** · 27-01-10

Originally Posted by SarahHoward

I have just had a call from my bank who have refused to renew my overdraft facility which my business relies on at various times in the year. Is there an alternative way of financing my business as this will have serious impacts on our chances of staying in business?

How much do you need Sarah?

**rehanahmed** · 27-01-10

Hi Sarah

I agree with Misshelpful - she knows her stuff! very helpful! (get it!!) ahem!

As an Insolvency Practice we work closely with a lot of our clients who have unfortunately been stung by the same problem in the last 6 month. I am also 90% certain I know who you bank with as well as there seems to be a pattern with one particular bank right now!

Nevertheless, I have two finance providers who can provide you with all the above that Misshelpful mentioned.

If you are wanting to have a chat with these guys, please send me a personal message and I will give you their details or vice versa

Thanks