Working Capital is the very heartbeat of your business. Without it, your business would simply not exist.
At MyInfinity we talk to many businesses who are experiencing cash-flow issues due to a lack of working capital. We tend to find that the owners don't understand how the cash-flow failed because they don't understand what Working Capital is.
What is Working Capital?
Working capital is the cash used in your business' day-to-day running. Without sufficient working capital your business would not have enough cash to fulfil its daily or monthly obligations. This could mean your business doesn't have enough in the bank to pay the staff payroll, settle trade creditors or even pay HMRC. These tend to be the crisis situations that we help clients resolve with a working capital loan.
There are also situations where a working capital loan is required to prevent future cash-flow issues. Maybe your business has won a large contract, and you don't have the cash reserves to purchase the initial supplies, equipment or staff. In this example a working capital loan would work by providing the initial cash-flow boost to start the project, enabling the growth of your business.
At MyInfinity Finance our experienced Account Managers, most of whom are seasoned Accountants, understand the importance of working capital and how best to manage it.
Once you have identified a working capital requirement you will need to fix it very quickly. There are many different options that our Account Managers could recommend.
Working Capital Loans
Designed with speed in mind working capital loans tend to be offered over a shorter term to allow for a quick cash boost.
The size of a working capital loan is dependent on many factors, typically whether it's unsecured or secured. Unsecured working capital loans tend to range from £1,000 to £250,000. Secured working capital loans tend to be restricted by the value of the asset it is being secured against.
The eligibility criteria for this type of finance varies widely depending on the lender. Typically you should have been trading for more than one year and be a home owner.
Due to the nature of working capital loans a Personal Guarantee is always required. You should consider this before accepting any finance offer.
What You Will Need to Apply
The application process is different from lender to lender, but you should expect to need to provide:
Once we have the above, our Packaging team will access your application and decide which lender best suits your needs. This is a quick process providing all the above is received by us. We will then work with our lending panel to secure you the best rate possible and present you with a decision-in-principle.
There are other options that can be explored for a business looking to raise working capital, such as:
Why choose us?
We are fully authorised and regulated by the FCA
We charge no up front fees
© MyInfinity Finance Limited - All Rights Reserved.
Co. Registration No: 08469710
Authorised and Regulated by the Financial Conduct Authority, Ref: 672182
Data protection act Reg No: ZA002246
Trading/Registered Address: MyInfinity Finance Limited: Suite 20, River drive, Cookson House, South Shields, NE33 1TL
MyInfinity Finance Limited acts as a credit broker and are not a lender.
Applicants must be aged 18 and over. Terms and conditions apply. Guarantees and indemnities may be required.
We do not charge our clients for any of our services but will receive commission from any lenders that we are successful in obtaining you finance from. We will never ask you for any upfront payments. Our services are for UK businesses only.