Whether you’re starting your business or growing it, you need to know how to get the money that you need, when you need it. You may have heard of business credit cards and merchant accounts; they're two of the many financing tools available to help you scale your business.

Business Loans:

Overdrafts:

Overdrafts are short-term loans tied to your account balance, which means you can borrow money whenever you need it. The interest rates for overdrafts are usually higher than interest rates offered for loans or lines of credit, but overdrafts often cost less than bounced checks. The downside is that overdraft charges vary widely depending on the bank.

But if you're looking for immediate cash flow, an overdraft might be the right option for you.

Invoice Finance:

Send invoices and get paid faster. With Invoice Finance, you can invoice clients with the push of a button, keep track of all your outstanding invoices, and manage late payments.

Merchant Cash Advance (MCA) is an alternative to traditional bank financing. MCA is a non-recourse loan that allows your business to benefit from the cash flow you generate right away. MCA can be a short-term financing solution for your business, but it's important to understand the terms and conditions of this loan. With MCA, your business receives a line of credit that is based on the amount you collect from customers at the time of purchase.

Looking to grow your business but need funds? We can help match you with a lender who can get your business the capital it needs to grow. Call us now on 02032909019 to start a conversation about how we can help.

1. Regulation and Regulatory Constraints 

2.  Timing & Simplicity 

3. Business and or Investors' Need For Flexibility 

By CEO, GIC Capital 

Call Now +44 (0) 203 2909019

Sometimes, you need an injection of finance. It may be that your business has a golden opportunity and needs a decent sum of money in a short time to take full advantage, or perhaps you’re looking at a new office space and feel a bridging loan is the fastest route to making it happen. Whatever the reason, bridging finance has become hugely popular over the last half-decade. 

If you’re seeking a bridging loan, read on for our tips to help you make sure your ducks are in a row before applying.

How Much?

This is an obvious, but vital, step in determining the bridge loan deal you seek. Depending on what you are seeking a bridge loan for, the sums can vary dramatically, and you need a very clear picture of how much you need before approaching a bridging finance lender.

But this isn’t just about what you’re going to borrow, it’s also about how much you’re going to pay back. You need to consider the collateral you will be putting up against the loan. For businesses, this could be property such as the office premises – including on -site equipment. You may also use the business itself as collateral, or client sales and invoices.

It’s vitally important to know that you will have to pay off the loan and interest in its entirety and ensure that you will be able to do this. If not, your collateral is at risk and if that includes the business itself, the bridging loan will be for naught.

Open or Closed Loan?

It’s also important to know the type of structure your bridging loan will take, and which one is right for your situation.

Open bridging loans offer more flexibility to your business as there isn’t a fixed repayment date. The repayment date will likely be less than 12 months from the date of the loan, but there’s no mandatory date for repayment in place.

A closed loan, as you might expect, has a specific date when repayment is expected by the lender. This is a good option when you have a clear idea of future finances and how the bridging loan is going to facilitate opportunities for the business.

Exit Fees

It’s also important to know the exit fees involved when taking out a bridging loan for your business. Most lenders will charge one month’s interest as an exit fee and this will usually apply whether the loan has run its full course or you are repaying the balance early.

It’s important to know this if you are in a position to repay the bridging loan earlier than the scheduled date. Many businesses can forget about exit fees and not plan accordingly. Know the terms and have it nailed down when sizing up potential bridging lenders.

If your business is seeking short-term, bridging solutions for its financing needs, contact  GIC Capital today for a comprehensive, professional and informed service.  

Running a business is hard. There are a million and one things to think about every single day and your focus should always be on how to improve and thrive. Unfortunately, late payments can throw operations into disarray and through no fault of your own. It’s one of the most frustrating elements of business and something most firms deal with.

A shocking recent survey has shown that half of SME owners in the construction sector have suffered very real repercussions because of late payments.

So, with all this in mind, let’s look at how you can bring your number of late repayments down.

Research & Vetting

Bringing in new business is always a great feeling, but don’t jump in with both feet. Take the time to learn about your new prospective client, and start researching as soon as they reach out.

Look at things like credit reference agencies, but also go deeper and find whatever information you can about the new prospective client. When you’re armed with the facts, you can make an informed decision on whether this is a firm you want to do business with. It’s a simple point, but one that can offset a great deal of stress later.

Be Clear on Payment Terms

It’s a funny fact of business that some people feel like they are being too heavy-handed by being upfront about expected payment terms. But it’s important to push this aside and be crystal clear and transparent about when you expect to be paid.

Make this part of your process when talking with potential new clients and everyone will know where they stand. State this information clearly on invoices and other agreements, and there can be no excuse for late payments.

Don’t be Scared to be Firm

When a client is late with a payment, the temptation is to be understanding and accommodating, but this isn’t a credit-lending situation and that unpaid money is yours by rights. You need to be ready to state, firmly and clearly, that you expect payment by a specific date or you will have to re-evaluate this business relationship. It’s not nice but businesses don’t run on promises, they run on money.

Incentivise Prompt Payment

Many businesses mitigate late payments by making prompt payment more attractive. Usually, this in the form of a discount for payment on receipt or within an agreed number of days. Obviously, you don’t want to cut your margins down too much, but this is a great way to show customers your value prompt payment and avoid lengthy delays.

If you’re seeking finance for your business, get in touch with GIC Capital today. Offering a range of finance solutions, GIC Capital works with you to find the perfect solution for your needs. 

As the UK moves ahead with Brexit and inches closer to exiting the European Union, there will be an increased emphasis on how much business the country does abroad. This means a greater focus on exports to new trading partners, and an increased flow of goods to already established markets like American and China.

Luckily for businesses in the UK that export, the government is putting its best foot forward in nurturing and helping exporters grow and find success.

Access to Finance

Back in October 2017, the government came up with a plan to enable SMEs in the UK to access funding from banks to boost their export potential. Via the Bond Support Schemeand the Export Working Capital Scheme, the aim was to make it quicker and easier to obtain much needed finance. Backed by the UK Export Finance Initiative, these finance tools are now even easier to access and deliver funds at a much quicker pace.   

Instead of weeks waiting for funding, UK exporters can now access finance in minutes. The government has worked with lenders to reduce paperwork – doing away with the government’s own UKEF forms – and harmonise bank applications for export with the government’s own regulations. Now exporters applying for finance interface with the bank only and they check the application against UKEF’s criteria. This means that banks can vet an application against UKEF guidelines and approve on the spot.

At the same time, the government has created a streamlined digital service through which all finance transactions flow. This means less paperwork and less time spent on the minutiae of finance deals.

Practical Support

The barrier for many businesses seeking to export is often red-tape. It can be a hard process working out what finance or schemes are applicable to the business at hand and many SMEs are often wary of sinking time into something that might not ultimately be relevant to them. The government has also noted this and responded accordingly.

‘Exporting is GREAT’ is the UK government’s effort to provide a comprehensive, one-stop-shop for exporters, from the new to the established. They have specific sections covering everything from guidance to assessing export readiness to finance options. 

They also offer in-depth sections on business planning and marketing. The scheme and attendant site is a great portal for seeing the various forms of finance and support available for those businesses ready to export.

There has probably never been a better time to start exporting or, indeed, to expand existing operations. The government is fully behind exporters and the range of advice and finance out there is comprehensive.

Don’t forget, GIC Capital also provides business finance and can help you realise your growth ambitions. Contact us to find out more. 

Statistics recently released by WorldFirst have revealed that the number of SMEs that are trading internationally is steadily declining. The figure dropped to 1.5 million last year, just half of what it was in 2016.

Perhaps it’s a lack of funding or concerns over the state of the foreign economy thanks to speculation over Brexit that is leading many SMEs to take a step back from trading internationally.

Sadly, a decline in trading could mean a fall in productivity and profits for SMEs as the benefits of exporting goods globally and significant. Read on to find out more about how trading on a global scale can benefit your business.

Spreading the risk

When your business only operates in one marketplace, you leave yourself in a fairly vulnerable position. Negative conditions, economic downturns and market changes are all things that can have a damaging impact on your business. If you choose to export to other markets though, you are spreading this risk and allowing your business to benefit from more productive markets overseas.

The chance to learn about new skills and technology

If you want to grow and develop your business, it is crucial that you are constantly open to learning about new skills and technology. Trading in an international marketplace opens your business up to a wealth of experience and ideas and gives you the chance to engage with different perspectives and ways of doing things.

Learning to adapt to and adopt these new skills is going to give you a competitive edge over your competitors, which will in turn help your business grow and become more profitable.

Boosts profitability

While being innovative and learning new skills is important for SMEs, the bottom line is, well, your bottom line. Luckily, research conducted by The World Trade Organization has found that SMEs that do export internationally to sophisticated foreign buyers are 26% more profitable than those that don’t. Surely this is a good enough reason to start exporting overseas, right? 

Extended product life cycle

When you choose to sell your products on a global scale, you extend the average product cycle of launch, growth, maturity and decline. This can also help you with new product development.

Are you hoping to start trading internationally but are worried about securing the appropriate finance to do so? Check out our website to find out about the financing options that we have available.