What are my options if I need business finance urgently?

What is the quickest way to get finance for my company?

Regardless of how closely you monitor your company’s cash flow, the nature of business means you may still need finance urgently at some point. Fortunately, a range of flexible funding options are available that can be accessed quickly and reliably and will help you avoid slipping into financial distress.

With so many alternative forms of business funding now available, it can be difficult to know which is the most suitable. So what types of commercial finance are appropriate if you need funding quickly and how do you choose the best product?

What types of business finance can I get urgently?

Bank overdraft

Bank overdraft facilities should be arranged in advance so that they’re available to you if you need money urgently. A bank overdraft is a form of short-term revolving funding that can be used whenever you need it up to a pre-agreed limit. You only pay interest on an overdraft facility if you use it - you’ll usually pay an arrangement fee to set it up and a renewal fee each year.

Merchant cash advance

If your customers pay by debit or credit card, a merchant cash advance can provide funding quickly. The amount you’re eligible for depends on the value of your predicted card sales but monies may be available within 24 hours of applying.

Merchant cash advances are used by retail businesses as well as pubs, restaurants, cafes, and the leisure industry. Repayments are made as a pre-set proportion of card sales, typically within 12 months.

Invoice finance

Invoice finance uses the value of your sales ledger to provide urgent funding and isn’t dependent on a good business credit score. You can receive around 80-90 per cent of an eligible invoice within 24-48 hours of issuing it, which makes invoice financing a great option if your business has a strong sales ledger and a good history of collecting debts.

Working capital loan

A working capital loan is either secured against an asset or unsecured. These loans boost cash flow and are typically used for day-to-day operational costs. If the loan is unsecured, it may be faster to obtain but the lender is likely to need a personal guarantee to lower their risk.

Considerations when you need urgent business funding

When you need money in a hurry for your business, you have to consider various issues to choose the most appropriate product. These include whether you have assets that can be used as security for a loan, or that you could sell.

It’s also crucial not to strain your business finances, as even though urgent business funding is short-term, falling behind with repayments can lead to serious liquidity issues. Keeping all this in mind, seeking expert help to track down the best funding is highly advisable.

UK Business Finance are established commercial finance brokers and can help you find the most suitable type of funding in this situation. We’ll scour the whole market for the best type of urgent finance which fits your business needs both now and in the future.