The business world is tough, especially for start-ups and small to medium sized companies. It doesn’t take long to find yourself short on finances and your bank account on a slippery slope going from black to red. In some cases, all it takes is a late payment from a big customer that halts your cash flow, the loss of an important customer, or an unexpected bill you have to pay right away.
These problems don’t always have to mark the end of your business, but they often make it imperative to find a viable borrowing solution. There are many different options to choose from, and finding the right one for you can be daunting. It involves lot of research, and hours spent weighing the pros and cons and trying to balance your books.
If you’re struggling to know where to turn, here are a few options that you might want to consider:
Bank Overdrafts
Bank overdrafts are one of the best borrowing solutions open to you, and for business accounts, it’s often possible to negotiate an overdraft limit of between £5, 000 and 10,000. Interest is usually low compared to other borrowing options, and this makes it a great solution for most. The downside, however, is that those with a negative credit history will be very limited in terms of the overdraft facilities that are offered to them.
