smallbusiness.co.uk: Helping your business think big

Short-term finance

Rory Earley, CEO of Capital for Enterprise, explores the options...
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Q: We have an opportunity to expand our business geographically and add another office. The problem is, we don’t have the cash to do this at the moment as our business is seasonal, but we don’t want to miss out. Any advice?

Apr 30 2008

Answered by: Mark Endersby Ask a question

Seasonal businesses can vary dramatically in terms of sector and asset type. Assets within the business can also change over time. For example, the mix of work in progress, stock and debtors can change as the season progresses and sales can go up and down.

An asset based lending facility (ABL) may be suitable depending on your business. This type of facility can lend against most types of asset by way of one facility. Typically this can assist in leveraging more finance out of a business.

Comments [1]

Comment by Barry Orton

Wednesday 30th April 2008

There are other options that might be available. For example if you don't have sufficient assets in your balance sheet and if you can't provide other security to support borrowing, the Small Firms Loan Guarantee Scheme can be used subject to various criteria. It's very important that decisions like these are taken in the context of a properly prepared business plan with robust financial projections.

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