Refinancing your company - Business Finance

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Refinancing your company

Struggling to meet loan repayments each month may give you cause to consider refinancing your company.

If refinancing is done in a clear and considered way, refinancing could provide your business with the necessary funds to allow the breathing space to operate, without terms that strangle all life out of its profitability.

One of the biggest difficulties you'll face when looking to refinance your company will be the obtaining suitable terms and conditions.

However, the right deal is always out there for a business with an attractive and realistic business proposition.

Refinancing Options

Most successful businesses will conduct refinancing exercises when necessary, and when the time comes, finding the right refinancing package for your company will be crucial.

There are plenty of refinancing options available to choose from.

  • Bank Overdrafts. If your business needs a short term increase in financial availability and you're looking for a quick decision, a raised level of bank overdraft may be the simplest way forward. Preparing your proposal to show that the increase will just be for the short term will be important.
  • Factoring. Factoring will provide your business with working capital by selling invoices to a 'factor'. The factor will receive the invoices, pay your company the value of the invoices, and chase the debts. This will boost cash flow dramatically but comes with a small commission charge for the value of the invoices.
  • Asset Refinancing. Assessing the importance of property, machinery and stock can provide a financial boost when looking to refinance your company.
  • Stock Finance. Stock may tie up finances and can be an easily asset to value and be resold.
  • Materials Finance. Materials finance can help struggling businesses by replacing trade credit facilities that are cut through insolvency, as some providers can assist outside insolvency.
  • Enterprise Finance Guarantee Loans. Small and medium enterprises (SMEs) can benefit from the Enterprise Finance Guarantee Scheme. The government backed loan scheme is 75% underwritten by the Department for Business, Innovation and Skills (DBIS).
  • Business Angel Investments. Business angels can provide your business with a loan in exchange for equity. The experience of an experienced business professional can offer a fresh vision and new ideas to help the business grow.
  • Venture Capital. Venture Capital won't help your business if it's in trouble. To succeed in an application for venture capital, your business will need huge growth potential.
  • Directors Loans. Fellow directors may be able to raise funds privately and loan the money to the business.

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This website has been written and intended for registered limited companies in the UK only. The site contains general information and resources for limited companies only in financial trouble. Insolvency Helpline only work with limited companies to offer solutions for their business debt problems. Insolvency Helpline cannot offer help or advice any other entity except limited companies. Insolvency Helpline does not advise individuals, sole traders or partnerships seeking debt advice. If you are an individual, sole trader or partnership seeking advice, we recommend using an alternative service.

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