Managing and gaining access to working capital is often a challenge for smaller businesses. As opportunities appear and growth accelerates, the pressure grows on your financial position and financial calculations become more complex. Discussion with the bank manager becomes a regular fixture in your diary and the finance team are stretched as different scenarios are prepared.

There are a range of options you can explore to access finance, improve financial terms or find low interest business loans. One key factor is to ensure you have a strong relationship with the bank, and explain clearly how your business finances are structured, as well as how you generate revenues and protect your margins. If you can demonstrate well managed policies, it may give you leverage in your negotiations as the lenders’ carry out risk assessments and due diligence.

Trade credit insurance can add another dimension. A policy that will underpin the relationship with customers, especially in growth mode when many are new to your business, indicates a clear sense of risk management and the ability to make use of efficient financial instruments. Using trade credit insurance gives the business access to powerful information sources, which can make the forward planning and sales projections more robust. Our SmartLink service takes that even further, integrating with your systems to put the power in your hands.

Banks can respond in various ways to these indicators, subject to the needs of your business and to the strategies you are following. An increase in an overdraught facility, a better rate on the receivables finance advance, or access to other facilities could support that next step in an export market or on home territory. A lower borrowing rate might also be considered.

There are many benefits to the use of trade credit insurance. If you’re new to this type of policy, get in touch with our expert team now and they will be happy to guide you through the basics and explain the benefits for your business.

Small business leaders and entrepreneurs are well aware of the difficulties associated with the debt to capital ratio and working capital management. Your business needs flexible financing so that you can seize opportunities in existing or new markets. Before you can gain access to funds, business banks and investors will look carefully at the strength of your financial structure.  As you grow, new customers will check your business performance and stability. To reassure your financial partners and open access to additional bank finance, consider trade credit insurance and the other services we offer, such as debt collection.  You will improve the flexibility of your financing and demonstrate the quality of your risk management, opening the way to profitable growth.