As inflation continues to rise, securing finance is a crucial step for any start-up looking to grow and thrive in today’s competitive business landscape. Funding is often the make or break for a new company as it acts as its lifeblood, enabling it to fuel its operations, invest in research and development, and scale the business.
However, securing finance can be a daunting task for entrepreneurs who have had little exposure to the task, so we have compiled steps you can take to increase your chances of securing finance and put your business on the right track.
Step 1: Define your Equipment Needs and Rationale
Before seeking finance, it is crucial to have a clear understanding of what your start-up actually needs the finance for. Begin by clearly outlining the equipment you require and the rationale behind each purchase. Highlight how the equipment will enhance operational efficiency, increase output, or allow you to take on larger projects. This rationale establishes a strong foundation for securing asset finance.
Step 2: Showcase Industry Expertise
Evident industry experience plays a pivotal role in gaining asset finance approval. Lenders are more likely to provide financing if you can showcase a track record of successful projects in the construction sector. Highlight some of your completed projects and emphasise your team’s expertise. This evidence demonstrates your capability to leverage the equipment effectively.
Although you may not have a lot of industry experience as a start-up, lenders will appreciate any sort of successfully completed projects, or projects that are in progress but forecasted to be successfully completed in the future. Lenders will also take a view on prior industry experience.
Step 3: Demonstrate Repayment Ability
Lenders assessing asset finance applications want assurance that their investment will be repaid. To instil confidence, showcase your construction business’s financial health, revenue streams, and projections as best as you can.
Step 4: Pick the Right Finance Option for you
Select the most appropriate financing option based on your construction business’s needs. Hire Purchase and Finance Lease are the two most popular options. Hire Purchase allows you to spread the cost over time while eventually gaining ownership, while Finance Lease provides flexibility and potential tax benefits. Assess each option’s impact on your financials and choose the one that aligns with your long-term goals.
Learn more about each option here.
Step 5: The Smarter Option
As a financial broker, we understand that these steps can be overwhelming, as each step takes a lot of thought, time, and even finances. We take the stress off your shoulders by working with you to gather all the relevant details required to get an application submitted, then utilise our list of over 70 lenders to get you the best possible deal out there in as short a timeframe as possible; we have secured numerous deals in as little as 10 minutes! Applications are subject to status and approval.
We have worked with hundreds of clients, many of which have come back for more due to the quality of service and the deals we are able to secure. Just take a look at our Trustpilot reviews to get an insight into how we work. Get in touch with us today to see how we can help, no strings attached.