In its forecasts for the challenges facing the economy in the next couple of years, the British Chambers of Commerce (BCC) published figures on the 18th of March 2019 to suggest that overall economic growth is likely to a sluggish 1.2% this year, 1.3% in 2020 and 1.4% in 2021.
Although this same year is also likely to see a reduction of 1.0% in business investment, it is expected to increase to a positive 0.6% in 2020 and 1.1% in 2021.
If you are planning for your business to enjoy the benefits of that forecast increase in investment next year and the one after that, where are you likely to look for such funding and in what areas of your business might it be applied?
The BCC forecasts suggest that once the uncertainties over Brexit are resolved later this year, the British economy will be on the move once again and businesses will be actively seeking expansion finance.
In many instances, with lingering doubts about the strength of that revival, businesses may be cautious about any long-term borrowing that involves loans spread out over many years, a steadily mounting debt in terms of the interest payable, and the potential risk to company and personal assets that have been pledged as security against that expansion finance.
Businesses may instead favour short-term, unsecured borrowing to meet more immediate needs – and, because the requirement has an element of immediacy, look for loans that may be arranged, often entirely online, with the minimum delay.
Online lenders specialising in this form of short-term finance – such as Cubefunder – are often able to give a decision in principle on the proposed borrowing almost immediately. If your formal application is then approved, the requested funds will be transferred, directly to your company bank account within as short an interval of just 48 hours.
Although borrowing limits are likely to vary from one lender to another, you might be looking at anything from £5,000 right up to £100,000.
With repayment terms typically in the range of three to 12 months, such borrowing avoids any long-term commitment to debt – and reduces the accumulation of interest charges. Because the loans are usually fixed-rate, you also know the exact cost of credit from the very start and may plan the equal monthly repayments to coincide with your regular cash flow commitments.
There are many and varied ways in which such borrowing may be applied:
Business premises finance
Now might be just the time, therefore, to ensure that your business is adequately funded to meet the expected opportunities for growth in the next few years and to meet any unexpected challenges that may be thrown your way.