Small business financeSmall business finance

• CAN A FINANCE BROKER SAVE ME AND MY BUSINESS TIME AND MONEY?

• YES A good broker will be a highly trained finance expert You want to buy a business or expand one but do you

understand the lending market and the myriad of products that are available?

You need new premises and equipment, or maybe more working capital. You know business finance is what you need so you hit the internet ...there is an awful lot of information out there about business finance...confusing, frustrating, and more than likely a waste of one of your most precious

resources – TIME.

You may just decide to remain with your existing lender but the market is much more competitive and there are many lenders who would like to bid for your business.

SYNECTIC FINANCIAL will allow you choose the right business funding at a more competitive rate

• STARTING IN SMALL BUSINESS

• Four out of five people never put their idea for a small business into action

• If you have a great business idea, develop a business plan then talk to Synectic Financial about your small business finance options

• HOW MUCH MONEY DOES YOUR BUSINESS NEED?

A lot of small businesses fail because they run out of cash, not because they offer a poor product or service. How much money do you need for your business? You need set-up costs and your living costs covered until you get established. Don’t even consider going into business until you have developed a detailed business plan and cash flow projection.

• Your Small Business or Commercial Finance options include:

• BUSINESS FINANCE or COMMERCIAL FINANCE? Both Business Finance and Commercial Finance are usually secured

by either commercial or residential property. However Business Finance is probably more associated with small business. Commercial Finance relates more to financing a commercial property

• BUSINESS LOANS Business loans are where the finance is for business purposes and

the interest costs surrounding the loan are tax deductible against the profit of the business. Small business operators provide security by way of either residential or commercial property.

• COMMERCIAL LOANS A commercial loan is when the finance for the purchase of a

commercial property, commercial property development or business purchase

Larger corporate borrowers usually rely only on the assets of the company as loan security, eg trade debtors

• LINES OF CREDIT

A line of credit entails your being given a borrowing limit by the lender and you draw down money- up to that limit- as you require it.

The advantage of a line of credit is that you only pay interest as you draw down money.

The disadvantage is that the interest may be higher

A line of credit should be “fully fluctuating” that is , it should only be used as a short term financing option, rather than for the purchase of

major commercial plant or equipment

• HOME EQUITY LOAN

Many have limited cash reserves but have built equity in their property.

That is the property is worth more than what is owing on the mortgage borrowed

You can access this equity to finance your business or investment

• START-UPS vs EXISTING BUSINESSES

If you are considering running your own business, you should be aware that it is usually easier to obtain business finance for an existing business rather than a start- up

Lenders tend to consider start-ups as risky, whereas an existing business has a financial record they can review.

SYNECTIC FINANCIAL have business finance options for start-ups

• VENTURE CAPITAL

Venture Capital is here the lender provides funds in exchange for a stake in your business

The further your idea is from fruition, the less likely the venture capitalists will be to provide funding and they will usually require greater equity holding in return