Genie Lending is often able to arrange unsecured business loans to fund short term cash flow problems, providing companies in need with working capital that is required quickly, thus relieving immediate cash flow pressure. Unsecured emergency business loans can be for between £5,000 and as much as £500,000 and payment can often be made into your company’s account within 24 hours.
In the life-cycle of many businesses, there will be a time when additional funding from a short term business loan is required, occasions where the need for funding is generated by a pressing, immediate need which may ultimately be a matter of survival for the company.
When planning your company’s finances, you may have based your cash flow projections on a large new order, an order that, at the eleventh hour, is cancelled leaving your careful cash planning shot to pieces. Funding is now, from nowhere, at crisis point with immediate payments that you need to make and no funds from that new order now coming to provide the cash that you need.
Similarly, you may be waiting on payment of a significant invoice. “The cheque’s in the post” from that blue chip or long standing customer, except it does not arrive and the funds which you anticipated that you would have and had earmarked to pay this month’s wages or crucial supplier invoices, are just not there yet.
In both these instances, not that long ago, your friendly bank manager would have come to the rescue and plugged your cashflow gap with an overdraft, but the rules have changed and the bank is no longer there for many companies. It’s raining but the bank has taken the umbrella away.
The implications of the cashflow hole could be significant and have potentially catastrophic consequences for your business. Those unpaid creditors may start legal action against the company in order to recover their debt, which may, at best, have an adverse effect on the company’s credit rating and, at worst, result in a winding up petition being presented against the company. If staff are not paid, you may lose their loyalty.
If, however, your underlying business is fundamentally sound and it has the ability to repay a business loan over a period of time of as long as 5 years, then why consider radical solutions like formal insolvency. Why, as a director, be forced to secure company debt against your personal property just to get your company over its cashflow hump?
Why not seek an alternative method of short-term funding in order to make the immediate payments and repay the liability when funds are available? Genie Lending is here to solve the problem of where to obtain that short to medium term funding from, given our relationship with more than 30 providers of unsecured loan facilities to businesses of all types.
There are, of course, some criteria which would need to be met in order for funding to be provided:
- The business must be fundamentally viable
- There should be no history of continued losses or you should have a clear plan in place to eradicate future losses
- There must be evidence of a clear ability to repay
- A personal guarantee will be required
If these criteria can be met and business loans are determined to be the appropriate method for dealing with a company’s cash flow problems, a solution can be provided that enables ongoing trading, allows you, the directors of your company to remain in control and deal quickly and easily with a problem that may otherwise pose a significant risk to a business.
Based in Dorset, Genie Lending is a leading provider of affordable unsecured business loans. If you would like to learn more, get in touch with one of our experience business finance managers today!