When you have the potential for success within you, adversity and temporary defeat only help you prepare to reach great heights of success. Without adversity, you would never develop the qualities of reliability, loyalty, humility, and perseverance that are so essential to enduring success. Many people have escaped the jaws of defeat and achieved great victories because they would not allow themselves to fail. When your escape routes are all closed, you will be surprised how quickly you will find the path to success. 

1. Fail and Quit (Excuses) or 
   
2. Fail and Learn (Results) 

They say, "Success Lies On The Other Side of Failure & Feedback Is The Breakfast of Champions!" 

Call Now ​+44 (0) 203 2909019

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.