For any business, a steady cash flow is very important, and seen below are three cashflow tips to boost your business bank account, proving this very fact. It can help a business to see its projections for the year or even months ahead. In addition, it can help to maintain a positive cash flow. This allows you to see when to expand. According to 2021 research by LSE, almost 15 percent of UK businesses are at ‘great risk of imminent closure’ due to bankruptcy after Covid.
Three cashflow tips to boost your business bank account are mentioned in this blog. These are business loans, refinancing and business loans. Read more about these below.
When referring to a business loan it’s the exchange of money between the lender and the borrower, in return for this payment plus added interest. The lender—usually a corporation or government—loans an amount of money to the borrower, with no exception to the amount. In return, the borrower agrees to a set of terms. These can include any finance costs, interest, repayment date, and other conditions.
An example of this is a VAT Loan, which is something that WestWon can provide. Benefits of this include being able to keep funds in your business to be used elsewhere. In addition, payments can be made directly to HMRC who then receive the money on time and an easy fixed repayment schedule with fantastic rates.
A refinance is the process of changing and replacing the terms of an existing credit agreement, which can for instance relate to a loan. When a business or an individual decides to refinance a credit obligation, they essentially seek to make a number of changes. These can be to their terms outlined in their contract. If approved, the borrower gets a new contract that takes the place of the original agreement.
There are several types of refinancing options. Depending on the needs of the person who is borrowing, the type of loan can differ. Some of these options include:
- Rate-and-term refinancing
- Cash-out refinancing
- Consolidation refinancing
Sale and Leaseback:
Sale and Leaseback is an exchange in which one sells an asset and then can lease it back for the long term. Therefore, even if you continue to use the asset, it will not be in your possession.
A sale-leaseback therefore enables a company to sell an asset in order to increase capital. It then lets the company lease that asset back from the purchaser. This can improve your company’s balance sheet.
For more information on any of these three cashflow tips please give a member of the WestWon team a call on 01494 611 456 or email us on firstname.lastname@example.org