Thanks to Craig Drake, Head of Research at Rangewell, for supplying this article about finding the right funding for your business:
The trend across all areas of finance has been to boil down a complex world into ticked boxes - highly dependent on algorithms to give instant simple answers in black and white. And it’s the same when it comes to trying to get financing for your business. Often, a company will be looking to expand. They’ll visit their bank’s business manager and perhaps get turned down. And then they might go to an online lender that is even more heavily reliant on an algorithm to accept or reject businesses in need of funding.
The problem is that, as any business manager knows, life is not that simple. No two businesses are the same and by oversimplifying things, businesses risk either getting shoehorned into the wrong kind of funding or getting much higher rates than they should have access to.
Let’s take the example of one Rangewell client - a well-known tier 1 manufacturing company. Post-recession the company needed access to funding for a new division within the group. The company had identified this division as being high margin and needed to be up and running as soon as possible to take advantage of market conditions and to get a jump on competitors. They tried to raise funding from their current banking manager but were unsuccessful as they based their decisions on what was on paper rather than looking at the business on an individual basis and its future projections.
This is where Rangewell comes into its own when compared with other lending specialists. Rather than ticking boxes, we saw that these future orders were a way to provide funding for the company. After meeting with one of our specialist funding partners, we agreed to put in place an invoice discounting facility with the principal company in order to release sufficient funds each month to cover the setup and operation of the new division. Thanks to taking a more indepth look at the company’s funding needs, the new division is now generating an income that benefits the whole group and has placed the company as an undisputed within their specialised market sector.
Our motto is “Every type of finance for every type of business”. We are in a unique position having comprehensively and independently mapped over 300 business finance lenders and 23,000 business finance products in the UK. We work with High-street, Challenger, Specialist, Niche, and Alternative lenders ensuring that businesses can access finance in a simple, transparent and hassle-free way.
No matter the size and shape of your company, the important thing to remember when you are assessing your funding needs is that no two businesses are the same and that it is easy for you to overlook aspects of your own business that can provide you with funding opportunities - don’t get caught in the box-ticking trap or settle for the first offer.
Rangewell helps business owners to identify which type of finance is most appropriate for individual business needs. The guides include information about secured loans, selective invoice finance, franchise finance, overdraft replacement and crowdfunding. Users can compare deals and apply online.