By Stephen Dinsmore, corporate finance manager, Armstrong Watson LLP

FUNDING remains a priority for a lot of businesses, whether you are cash-rich, in a position to grow, or looking to ease pressure on your finances. The world of funding can feel overwhelming sometimes, but with the right planning and advice, it could accelerate your growth plans. From buying equipment to spreading the cost of a tax bill, here are the popular reasons business owners are seeking funding.

1. Investing in something new

Businesses are always looking at ways to expand or improve efficiencies. They might look to make an acquisition, hire new staff, purchase property or add a new service line. The majority of these plans require an element of funding, so strategically funding investments ensures that day to day working capital is unaffected.

2. Fulfil a big order or contract

Contract wins can be bittersweet: you’re growing, but you need resources to complete the job. You might need new equipment, premises or staff to help you deliver on your new project. Asset based finance is a common solution, allowing businesses to leverage the assets used to fulfil the jobs and unlock vital funding.

3. Spread the cost of tax bills

You might be starting to think about your Corporation Tax deadline. Paying in one lump sum can impact a business’ cashflow, delay growth plans and divert money away from day-to-day operations. You could spread the cost of your corporation tax with a business loan and retain working capital for other activities.

4. Manage debts

Reviewing a business’ existing debts can identify potential cost savings through refinancing to either more favourable terms or a longer repayment profile, freeing up additional cashflow.

5. Cover a cashflow gap

The pandemic is still very much with us, and many firms are feeling the effects of unpaid invoices, supply chain issues and reduced customer demand. In fact, in early 2021 businesses were chasing £61bn in late payments. There are a range of options available, like invoice finance, where you borrow against your debtors, which can help to cover these gaps. There’s a whole host of reasons you might look to take out funding, but it’s important to ensure you’re getting the most suitable finance available.

To help you determine the best option for your business, please get in touch at or 07788 712078.