So you have just secured a contract from a new customer and after what seemed like an eternity you have received the finalised order. With great excitement you enthusiastically call your bank manager to give them the good news.
Surely with all the years of loyalty, continuous trading and with this new contract in place, a new facility or additional finance will be easily approved? But after numerous meetings, applications, paperwork and every other piece of documentation under the sun, the banks says no (or was it really the computer?).
So, what do you do?
To get to this stage, and let's face it, the application process often takes 6 – 12 weeks and can be very disheartening. With cash-flow always being at the heart of most business owners' thoughts, whilst conventional business loans and overdrafts are the general short-term solution, they can be difficult to put in place with banks ESPECIALLY with banks becoming more and more reluctant to lend. Here's a few options you may want to consider for your business:
1. Give up
Obviously not the ideal solution for any business that is wanting to grow and expand. Whilst it may seem that it is "all too hard" and fruitless, giving up will only hinder your company's potential to succeed. Turning away contracts and new business is not a feature in your business plan for the year, so it's probably best not to go down this route.
2. Approach Other Banks
Approaching another (perhaps smaller bank) can often seem like the best next alternative. However, it is important to remember that the application process, documentation and security required will most likely be the same (if not longer or more extensive as they will not have the same understanding or relationship with your business). Another lengthy, drawn out application process can have dire consequences for your business. It could mean you lose that contract or any potential business, as it will only delay you putting in the order to your supplier and eventual delivery to your end customer.
3. Alternative Financiers
Many businesses are not aware or suitably informed about the various alternative forms of finance that are available and haven't ever considered using alternative finance. It seems that many business are missing out on readily available finance.
Alternative financiers can often offer tailored, working cash flow solutions that fit in with their client's requirements and can deliver significant working capital benefits. As an alternative financier that has been serving local and international markets for over 27 years, Scottish Pacific Tradeline is well-placed to help such clients. We have knowledgeable and skilled client service teams ready to assist and we guarantee applications are turned around inside 5 business days. Furthermore, no property mortgages are required as security.
Whilst many Australian businesses are familiar with bank lending but with a decrease in the availability of bank facilities the time is now to explore ones' options.
So, the answer is simple: don't miss out on funding, consider the alternatives.