Top Business Finance Tips for Independent Retailers

08/08/2014

Managing Your Money

Have you ever considered how your business finance plans compare to the big multinational corporations? Or whether you have a completely different set of financial problems altogether? The right answer is that no two businesses are the same. We understand that whether you deal in billions or hundreds, you still need to pay suppliers and staff as well as sell to customers. Whatever is left at the end is your profit or loss. Small businesses may have a little cash put aside in a savings account to pay taxes at the end of the year and might enjoy a little interest from that account. A multi-national corporation may have its surplus invested in pension funds or the stock market, but essentially, the principles are the same.

How Does a Big Business Plan?

Some large businesses have excess money to invest. However many are run just like your business, and that means there are times when finance for business is tight.

We advise planning for shortfalls highlighted by your cash flow forecast; which may be something as simple as arranging an overdraft with the bank. To be honest there’s not much difference in the way small and big businesses operate in that respect.

You might not think it makes much sense, but banks often lend more to businesses that already have significant debt. This is because they’ve already invested in the business and if that business goes under, they may not recover their money.  So in that situation, it’s in the banks interest to make sure the business can function properly. That’s why you should never be afraid to ask your bank for an overdraft extension.

Are You Planning for Change?

Most businesses have a quiet period and that’s most evident in retail. Timing the change from winter to summer clothes lines is all about risk. Do you hang on for a few weeks and risk the British summer catching you by surprise, or do you break out the vests and t-shirts in expectation? That extra stock of winter clothes at a great price is only a great price if you are happy with the possibility of being stuck with them or selling them on eBay to break even.

Selling surplus stock on eBay is fine, and if you don’t want to individually pack your items, then why not sell them to other traders as a job lot in the wholesale section. Whenever you make a buying or selling decision, it has to be based on risk assessments. If you don’t have the data to look back at you just need to have at least one, but preferably two or more ways to recoup your money from the excess stock you hold.

A Friendly Business Finance Alternative

Undoubtedly, the bank is your cheapest source of extra cash, but you should still shop around. The only downside of borrowing from a bank is the need to meet set repayments on a fixed schedule or you risk damaging your business’ reputation. But with unsecured business finance providers on the rise, picking the correct source of business finance can be a difficult process.

A Liberis Business Cash Advance is a radical method of business funding compared to traditional forms of small business finance. As it’s only based on card sales we will only ever ask for your business to pay back a percentage of your card-based sales monthly. That means you never need to worry if sales are down because you bought extra sweatshirts just when everyone decided to wear their shorts and flip-flops. We believe in providing business friendly finance. That’s why we’ve turfed out anything that’s not going to be remotely helpful to a business, such as late fees and fixed monthly payments.

The Liberis Business Cash Advance - Designed to help SMEs
  • Funding from £2.5k to £300k
  • One fixed cost; no APR, varying terms or penalty fees
  • A quick, easy and no hassle onboarding process
  • Higher approval rates than the banks
  • Flexible and painless repayments that support cash flow
  • 80% of customers use us again
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Registered in England and Wales No: 5654231. Address: Third Floor, Glen House, Glenthorne Road, London, W6 0NG
Liberis is a responsible financial provider. Liberis does not offer 'short-term loans'. The minimum expected duration of a Business Cash Advance is 120 days / 4 months and typical expected durations are 6-12 months. These business financing products are not consumer loans.