Working Capital Finance
SUPPLIERS → YOUR BUSINESS → CUSTOMERS
£££ OUT TODAY → CASH-FLOW GAP → £££ IN LATER
Working capital finance can help bridge the gap.
Keep your business moving when cash flow gets tight
A profitable business can still experience periods when cash is tied up.
You may need to pay suppliers, staff, rent or other business costs today, while your customers don’t pay you for 30, 60 or even 90 days.
That gap can put pressure on cash flow — particularly when you are growing, taking on larger orders, holding more stock or experiencing seasonal fluctuations.
Working capital finance can help bridge that gap and give your business the breathing space it needs to keep trading and take advantage of opportunities.
When might working capital finance be needed?
Every business has different cash-flow pressures. You may be looking for funding to:
- Purchase stock ahead of customer orders
- Cover the gap between paying suppliers and receiving customer payments
- Take on a larger contract or order
- Support seasonal trading
- Manage unexpected business expenditure
- Fund expansion or additional staff
- Release cash tied up in invoices
- Maintain cash reserves while the business grows
- Take advantage of an opportunity that requires funding now
The important question isn’t simply “How much can I borrow?”
It’s “What is causing the cash-flow requirement, and what type of funding is appropriate?”
Funding for new and established businesses
Working capital requirements aren’t limited to established companies.
A new business may need working capital to purchase stock, meet initial operating costs or support the period between launching and generating sufficient revenue.
With limited trading history, the funding options available can be different, so understanding the wider circumstances of the business is important.
We can help you assess the requirement and identify potential funding routes based on factors such as your experience, business proposition, contribution, projected cash flow and available security.
For an established business, working capital finance may be required because the business is growing faster than its cash flow.
For example, winning a significant new contract can sound like excellent news — but fulfilling the order may require you to purchase £100,000 of stock before receiving payment from your customer.
The business may be profitable, but the timing of the cash flows creates a funding requirement.
That’s where the right working capital facility can make a difference.
What types of finance could be available?
Depending on your circumstances, working capital requirements may potentially be supported through a number of commercial finance solutions, including:
- Revolving Credit Facilities
A flexible facility that can allow a business to draw funds when required and repay them as cash becomes available, subject to the facility terms.
- Invoice Finance
Where eligible, funding can be provided against outstanding customer invoices, helping businesses access cash before their customers pay.
- Business Loans
A fixed amount of funding may be appropriate where there is a clearly defined requirement and a structured repayment plan.
- Stock Finance
Funding designed to help businesses purchase stock without placing the entire cost on existing cash reserves.
- Merchant or Card-Receipt Finance
For businesses with suitable card or merchant receipts, funding may be available based on future card sales.
The most suitable solution will depend on the business, the purpose of the funding and the lender’s assessment.
Why speak to BAT Financial Solutions?
Working capital isn’t simply about finding money to fill a hole.
It’s about understanding why the cash-flow pressure exists and whether the proposed finance fits the underlying business model.
With over 35 years of banking and lending experience, BAT Financial Solutions understands how lenders assess commercial funding requirements.
We look at the wider picture, including the purpose of the borrowing, the business’s financial position, existing commitments, cash flow, credit history and the proposed repayment strategy.
We then consider the commercial finance options available through our lender network.
Deal First. Lender Second.
Our approach is straightforward:
Understand the requirement → Structure the funding → Identify suitable lenders → Secure the finance
We don’t believe in simply sending an application to a lender and hoping for the best.
We believe the deal should be structured first, and the lender identified second.
Deal First. Lender Second.
Our approach is straightforward:
Understand the requirement → Structure the funding → Identify suitable lenders → Secure the finance
We don’t believe in simply sending an application to a lender and hoping for the best.
We believe the deal should be structured first, and the lender identified second.
Is your business experiencing a cash-flow squeeze?
If cash is being tied up in stock, invoices, growth or a timing gap between money going out and coming in, it may be worth exploring your options before the pressure becomes critical.
Talk to BAT Financial Solutions about your circumstances.