Are you a small business owner looking to expand in the near future? Needing to borrow in order to do so?
Many people are of the view that the Royal Commission will create a tighter lending space. If borrowing becomes more difficult how will you fund your business expansion? Proactive planning is more important than ever before.
In light of this, here are our tips:
- Start planning early
- Open a conversation with your broker / financier early – discuss your plans and determine what the financiers are looking for
- Review your financial position – are you already carrying a high level of debt?
- Can you afford the repayments? Is your cashflow strong, is your income consistent and reliable, is there something that could jeopardise the business’ stability?
- What does the future look like – can you present a clear picture of where the business is heading to a potential financier – how will this funding strengthen the business going forward?
- Consider alternative lenders
If you start the planning process early you can adjust and reset your course if required.
This is where having an open dialogue between you and your accountant is essential. Your accountant will work with the information you provide and can make recommendations for the outcome you desire. Contact our team to start planning so that you aren’t caught out when you do make a decision to borrow funds.