Sample 1 - Blog #lendingSample 1 - Blog #lendinghttps://lololol.zohosites.com/thoughts/tag/lendingSat, 03 Aug 2024 00:14:33 -0700http://zoho.com/sites/<![CDATA[Financial statements—what they are and why you need them]]>https://lololol.zohosites.com/thoughts/post/Financial-statements—what-they-are-and-why-you-need-them

Learn the Facts About Business Financial Statements

Business requires a basic understanding of financial statements.  The purpose of business financial statements is to provide information about the financial condition and results for an organization.  Financial statements provide information about an organization’s assets, liabilities, income and or retained earnings.

Income Statement (also known and Profit & Loss Statement)

The income statement is one of the most important, as it provides a snapshot of a company's profitability. In this post, we'll take a closer look at what an income statement is, and how it can be used to assess a business's performance.


An income statement, also known as a profit and loss statement, is a financial document that outlines a company's revenues, expenses, and profits over a specific period of time. This information is used to assess a business's financial health and performance.

The income statement can be used to assess a number of different things, such as a company's ability to generate revenue, its operating costs, and its overall profitability.


Additionally, it can be used to compare a company's financial performance over time, or to compare it against other businesses in its industry.

When reading an income statement, it's important to keep in mind that there are a few different ways to measure profitability. The most common metric is net income, which is measured as revenues minus expenses. However, there are other measures of profitability, such as gross margin and operating margin, which can provide additional insights. No matter how you choose to assess it, the income statement is an essential tool for understanding a company's financial health. 


By understanding what an income statement is and how it can be used, you'll be better equipped to make informed decisions about your business.

Balance Sheet

The balance sheet is another financial statement that business owners need to be aware of. The balance sheet provides a snapshot of a company's assets, liabilities, and equity. This information is used to assess a company's financial position.


The balance sheet can be used to assess a number of different things, such as a company's liquidity, its debt-to-equity ratio, and its working capital. Additionally, the balance sheet can be used to compare a company's financial position against other businesses in its industry. By understanding what a balance sheet is and how it can be used, you'll be better equipped to make informed decisions about your business.


In order to make informed decisions about your business, it's important to understand the different types of financial statements. These statements can provide valuable insights into a company's profitability, operating costs, and overall financial health. 


By understanding what each statement is and how it can be used, you'll be better equipped to make informed decisions about your business.

Cash Flow Statement

A cash flow statement is one of the most important financial statements for a business. A cash flow statement tracks all the money flowing in and out of a business. This is important because it allows business owners to see whether they are making or losing money.


There are three types of cash flow:

  • operating,
  • investing, and
  • financing.

Operating cash flow is the most important, because it shows whether a business is generating enough cash to pay for its day-to-day expenses.

Investing cash flow is important for businesses that are looking to grow, because it shows how much money is being reinvested back into the business.

Financing cash flow is important for businesses that have debt, because it shows how much money is being used to pay off debts.

Why are business financial statements important to understand?

Financial statements are important to understand for a variety of reasons. 


Firstly, they provide insights into a company's overall financial health. This is important for both shareholders and creditors, as it gives them an indication of whether or not the company is a good investment. 


Secondly, financial statements can be used to identify trends and make predictions about a company's future performance. This is important for managers, as it allows them to make informed decisions about where to allocate resources. 


Finally, financial statements are also a useful tool for tax purposes. They can be used to calculate a company's tax liability and to determine whether or not it is eligible for certain tax breaks.

Business Lending: How to banks use financial statements for business credit assessment?

Banks use financial statements to get a clear picture of a business's financial health. This information helps them determine whether or not a business is a good candidate for a loan.


The first step in credit assessment is to examine the business's balance sheet. This document provides a snapshot of the business's assets, liabilities, and equity. The goal is to identify any red flags that could indicate financial problems.


Next, banks will look at the business's income statement. This document shows how much revenue the business has generated and what expenses it has incurred. This information helps banks determine if the business is generating enough cash to repay a loan.


Finally, banks will review the business's cash flow statement. This document shows how much cash the business has on hand and how it is being used. This information helps banks determine if the business has the financial resources to repay a loan.


By carefully reviewing a business's financial statements, banks can get a clear picture of the business's financial health. This information helps them determine whether or not a business is a good candidate for a business loan, business overdraft, revolving credit facility, term loan or commercial mortgage.

]]>Tue, 08 Nov 2022 22:07:45 -0800<![CDATA[Why is it difficult for small businesses to find money to grow?]]>https://lololol.zohosites.com/thoughts/post/Why-is-it-difficult-for-small-businesses-to-find-money-to-grow

How can small businesses find money to grow?

Some common funding sources for small businesses


When we refer to a "small business", we usually mean those with between one-and-five employees that have a turnover of less than £2.5m or an annual income between £100,000 and £500,000. It's also worth remembering that many small businesses are sole traders or partnerships without employees.

When you think about the types of business that fit into this category, you'll probably think of local shops, cafés, restaurants and so on – but the range is much wider than that. For example, many new businesses will start off as one-man bands or home businesses, and there's some really exciting stuff coming out of this area right now. New businesses such as online marketplaces like Etsy or food delivery services like Deliveroo are growing rapidly, which points to the wider category of digital business models being embraced by entrepreneurs with limited funding options.

One of the main reasons that it can be difficult for small businesses to find money to grow is that they often don't have much in the way of collateral. This can make it tough to get loans from banks, as lenders will typically want some kind of security before they're willing to give out a loan.

Another reason why small businesses might struggle to find funding is that they simply don't have the same track record as larger businesses. For example, a new business is unlikely to have the same level of revenue or profit as a more established company, which can make it harder to secure investment.

Finally, many small businesses operate in niche markets, which can limit their options when it comes to finding investors. For instance, if you're running a specialist retail business then there may not be many people who are willing to invest in your company due to its narrow focus.

One of the best ways for small businesses to find funding is through government grants. There are many different types of government grants available, and each one has its own eligibility requirements. However, the process of applying for a grant can be time-consuming and competitive.

Another option for small businesses is to raise money through crowdfunding platforms such as Kickstarter or Indiegogo. With crowdfunding, businesses can reach out to a large number of potential investors at once and get them to pledge money towards their project or product. The downside of this method is that it can be difficult to reach your fundraising goal, and you may not get funded if you don’t meet your target.

Finally, small businesses can also look into venture capital firms as a source of funding. Venture capitalists are willing to invest in high-risk projects in exchange for a percentage of ownership in the company. However, getting venture capital funding can be difficult as they typically only invest in companies that have the potential to generate a lot of revenue.


Grow your business with flexible business finance...

]]>Sat, 30 Apr 2022 03:14:00 -0800<![CDATA[How to Get a Small Business Loan Without Collateral]]>https://lololol.zohosites.com/thoughts/post/How-to-Get-a-Small-Business-Loan-Without-Collateral

Are you having difficulty getting a small business loan with no collateral?

In the event that you are a small business owner that needs financing, but you don’t have any collateral or assets to secure a loan against, then you might be wondering how you can get the capital that your business needs.

For businesses with a high card transaction monthly turnover, a merchant cash advance loan might just be the solution your business needs.

What is a merchant cash advance loan? A merchant cash advance is an advance on future credit card sales. Rather than waiting 30, 60 or 90 days for your business's credit card sales to pay off your invoices, a merchant cash advance gives you the capital upfront. Getting a merchant cash advance is the most efficient way for business owners to get cash from credit card sales.
Types of suitable business:
  • Any business with an average monthly card transaction volume of 20,000 or more
  • For example
    •  Restaurants
    •  Retail businesses 
    •  etc

Wondering how you can get a small business loan? Call 02032909019 for a free consultation. Our experts can help you even if you have a bad credit history. Call today before it's too late.
]]>Tue, 09 Nov 2021 22:10:00 -0800<![CDATA[What is the Cost of Capital?]]>https://lololol.zohosites.com/thoughts/post/What-is-the-Cost-of-Capital

What is the cost of capital and  what is a good deal? Can the cost of capital kill a deal? Check the video below to find out!

We aim to deliver much needed capital for SME’s and Property Developers.

Call Now +44 (0) 203 2909019

]]>Wed, 14 Aug 2019 07:18:59 -0800<![CDATA[3 Tips for When You’re Applying for A Bridging Loan]]>https://lololol.zohosites.com/thoughts/post/3-Tips-for-When-You-re-Applying-for-A-Bridging-Loan


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.  

We aim to deliver much needed capital to start-ups and SMEs

Call Now +44 (0) 203 2909019

]]>Sun, 01 Jul 2018 02:38:00 -0800<![CDATA[Thinking of moving away from traditional bank loans?]]>https://lololol.zohosites.com/thoughts/post/Thinking-of-moving-away-from-traditional-bank-loans


While SMEs do still rely on credit from banks, a report released by The Organization for Economic Co-operation and Development (OECD) has revealed that new bank lending has declined in a number of countries. 


GIC Capital provides financing options for SMEs looking to sustain growth through privately owned investment companies and is delighted to see that there has been a rise in venture capital investments, peer-to-peer lending and invoice trading. 


It’s promising to see that businesses are looking to alternative methods of financing when it comes to supporting the growth of their organizations and for SMEs, this is a wholly positive thing as they will avoid the crippling interest rates that bank loans often come with. 


The report from OECD did however reveal that some accessing appropriate funding for certain types of small businesses, including micro-enterprises, young SMEs and start-ups is still proving to be problematic. 


Here at GIC Capital we pride ourselves on being able to provide a range of different funding options for SMEs. Whether your business is well-established or just starting out and is looking for finance to support growth projects or simply needs capital for the day to day running of your organization, we can offered tailored solutions that are perfectly suited to your business and its needs.


Further promising findings in the OECD report also revealed that there was a decline in SME bankruptcies in 2016, suggesting much healthier business conditions which should in turn lead to increased confidence for start-ups. 


Small businesses in the UK are the lifeblood of the economy and are essential to innovation and growth. Providing reliable funding to these companies is imperative and will ensure that our economy continues to prosper.

We aim to deliver much needed capital to start-ups and SMEs

Call Now +44 (0) 203 2909019

]]>Sat, 03 Mar 2018 11:44:02 -0800<![CDATA[Why are things fraught between banks and SMEs?]]>https://lololol.zohosites.com/thoughts/post/Why-are-things-fraught-between-banks-and-SMEs

SMEs and banks do not always have the best relationship. The UK is leading the way in Europe for ‘start ups’, but many businesses have become afraid of the risks involved in borrowing to help them expand their companies further. The recent call for a tribunal overseeing disagreements between small businesses and banks serves to emphasise how frequently things go wrong between smaller enterprises and their bankers, and how cautious business owners often are because of this tricky dynamic. Let’s look at why banks and SMEs are often at odds…


Mitigating Risk

Banks are dedicated to mitigating their risks. A lack of capital led to the now-infamous credit crunch and caused widespread and catastrophic consequences for both business and domestic customers. UK banks grade their risks in more stringent ways than ever before, making small businesses an often riskier, and therefore undesirable, candidate for lending. They lack the resources of larger companies with a proven track record, and as the standards tighten, there’s been a gradual downturn in the likelihood of banks lending to smaller enterprise. Banks have limited data with which to assess whether they are able to settle their debts, and this impacts SMEs in profound ways, creating significant roadblocks to expansion.
Mutual Misunderstandings

Banks sometimes fail to recognise the very real benefits of SMEs in comparison to larger companies. Their comparative lack of resources makes them far less likely to indulge in tax avoidance and other unethical practices and SME culture often lends itself to helping keep the UK’s economy on track, with owners and managers at the helm who possess all the desirable attributes which have always benefitted commerce and industry, and by extension, the world of finance. However, this misunderstanding is not one-sided and steps are required to help mend relations between the two.


The Future of SME Lending

To stand the best chance of wooing banks, SMEs need to stick to business facts and develop a keen understanding of the loan application process. They must prepare realistic figures, actionable business plans and recognise the risks that their venture may pose. Banks meanwhile must become clearer when defining their criteria. Adding a personal touch would go a long way towards helping to recuperate the image of banks in the eyes of SMEs, and likewise, ensuring watertight applications would help SMEs achieve their goals with banking assistance. 

We aim to deliver much needed capital to start-ups and SMEs

Call Now +44 (0) 203 2909019

]]>Thu, 01 Feb 2018 21:00:00 -0800