What a difference funding makes

Looking at consumer credit figures, it’s pretty apparent Britons are not shy about borrowing money. Personal debt is in excess of £1.5 trillion [1] – a staggering number – and that doesn’t look likely to suddenly drop.

But the wage bill, or the rising cost of materials, or a myriad of other financial concerns can lead to sleepless nights which is sometimes when the ‘fear of funding’ sets in. It’s a misconception that borrowing money leads to debt, and that all debt is bad and will lead to business failure.

The problem with this sort of thinking is that it actually goes against conventional wisdom. Businesses need working capital; cashflow is imperative to the success of any company.

It’s really important that the attitude to businesses borrowing money changes because funding isn’t a sign of a company that’s struggling; quite the opposite in fact. It’s the sign of a business in a good place; with the means to safely borrow money without worrying about how it’s going to pay it back

But it has to be right for your business – flexible and fair. At Ultimate Finance we talk about “good” funding and it’s a word we’ve chosen carefully. We pride ourselves in being good to deal with; we’re friendly, open and personal. We’re an independent business, just like many of our customers, and we talk to them as peers. But we also believe funding brings a lot of good to a business and not just in terms of cashflow or assets. A business that’s properly funded is a business in which stress levels are kept to a minimum, where management can get on with leading the business and where employees can enjoy a stable, solid job with all the benefits that this brings.

This is why good is such an important word for us.

The SME sector is not simply a part of the UK economy; by most measures it is the UK economy. With over 99% of all business in this country being carried out by SMEs [2] and with 60% of the workforce employed in the sector, it’s no exaggeration to suggest that what’s good for SMEs is also good for the country. When one thrives, so does the other.

[1] The Money Charity, UK debt, October 2016.
[2] Department for Business, Innovation and Skills, Business Population Estimates, November 2016.

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