A recent survey of 1000 businesses undertaken by Marketinvoice suggests just 1 in 10 would look to fund growth with a business loan.
Rather, amongst the surveyed businesses, more than a quarter (26%) favoured invoice finance, followed by asset-based finance (22%). Aside from debt, businesses were typically reluctant to cede control to equity or venture capital investment, with just 6% having used this method of funding to boost growth and valuation.
Will Mason of Liquidity Club is more guarded around specific product focus, including invoice finance, ABL or business loans:
"Businesses must be wary of the ways in which they borrow and what security is offered to ensure that they remain flexible both in times of need and in times of success. For asset rich businesses the ideal growth funding might be secured, but there are many service based businesses for whom secured lending does not work and other options must be explored."
"This is why we recommend all businesses speak with an advisor when considering their financial structure and debt needs, bringing in their future plans but also taking time to consider the worst case scenarios".
To speak with us today please contact Will or the team here.
To read more about the Marketinvoice survey, click on the links below:
PGI Seating Solutions is focused on future growth and new contract wins after receiving a six-figure funding working capital facility. Liquidity Club has arranged and advised the deal with Positive Cashflow Finance acting as the funders.
PGI Seating Solutions manufactures and installs specialist fixed seating and bespoke contract furniture. PGI Seating Solutions specialises in all aspects of fixed seating such as bench seating, booth seating, restaurant and bar seating and banquette seating. The business quickly established a reputation for niche contract work to provide seating solutions for pubs, universities and larger corporates. Today the company employs 12 people.
PGI Seating Solutions has enjoyed steady growth and the working capital facility provided is helping to support PGI Seating Solutions future growth strategy and day to day operational requirements.
Paul Gavillet, Managing Director PGI Seating Solutions said: “We’ve built a superb reputation and are delighted to have fashioned and furnished hundreds of booth, bench and banquette seating systems for clients across the UK. Our key focus is on providing quality and we are proud of our gifted team of upholsterers, joiners, machinists and polishers. We have enjoyed steady growth and thanks to this new finance facility we can grow the business further with confidence and fulfil new contracts. We have been very happy with the guidance provided by Chris Carter at Liquidity Club and Andy Hume at Positive Cashflow Finance.”
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