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Many businesses go through periods when cash is tight. It could be that you have seasonal fluctuations in sales or an unexpected expense that causes a cash flow shortfall. Whatever the reason, short-term stock finance, sometimes called a working capital loan, can help.
Short-term stock finance is a fast and flexible form of funding that you can use to buy stock, capitalise on new opportunities or get your business off the ground. At UK Business Finance, we search the whole market to bring you the best short-term stock finance quotes. There are no fees to pay for our service and we even write the loan applications on your behalf so you can focus on growing your business.
Short-term stock finance is a short-term loan that’s designed to help with the day-to-day running of your business. As well as buying stock, you can use the loan to cover other costs such as staff wages, accounts payable and marketing, or provide a cash injection so you can pursue expansion opportunities.
Short-term stock finance can take the form of a secured or unsecured loan that you repay within 12 months or less. Secured loans of between £5,000 and £750,000 are easier to obtain but will require you to provide an asset as security. The amount you can borrow will be limited by the value of the asset you put up as collateral.
Unsecured loans of up to £250,000 are also available. Lending decisions for unsecured finance will be based on the financial health of your business and its credit score. You may also be asked to provide a personal guarantee.
Short-term stock finance can help you smooth away the bumps in your business’s cash flow and keep you in the black when your income falls or your costs increase.
The benefits include:
As with all forms of business finance, there are also a few things to look out for. The short-term nature of the loan means the interest rates may be higher than other forms of borrowing. You may also have to provide collateral or a personal guarantee to secure a loan, which can put business and personal assets at risk.
Lenders will look at a few factors to determine whether you’re eligible for a loan and how much you can borrow. Most lenders will ask borrowers to provide at least 12 months of trading history and check that the business has positive cash flow. If you want to apply for an unsecured loan, lenders will also consider your business’s financial health and credit rating. Your personal credit score may also be a factor.
If you or your business have a bad credit rating, we can still find you a short-term stock finance deal. You may not be able to access some unsecured loans, but secured loans should still be available if you have a business asset to use as collateral.
With so many lenders out there, we know how frustrating it can be when you want to find the right deal for your business. As an independent broker, we search more than 50 lenders to bring you short-term stock finance quotes that match the needs of your business. Use our tool to request a quote or get in touch to discuss your requirements with our team.
We work across a wide range of sectors throughout the UK, providing specialist advice to each sector.
Can I use property as security for a business loan?
Secured business loans require one or more assets to be put forward as collateral. This protects the lender from financial loss if a company cannot afford to keep up with the repayments at any stage.
Does my company have a credit score and how can I improve it?
Limited companies do have credit scores and they’re used for a similar purpose as individual credit ratings. Lenders use them as a guide to creditworthiness, but a business credit score is also useful for suppliers and investors to gain insight into your company’s financial situation.
What is bad debt and how can I protect my company?
Bad debt presents an insidious threat to the financial stability of your business. It places strain on your working capital and creates uncertainty in paying your bills, but this can be addressed successfully if you take proactive steps to protect your company.
What is the difference between open and closed bridging loans?
Bridging loans are short-term forms of secured finance that literally ‘bridge’ a gap between funds going out of a business and monies coming in.