This week marks Talk Money Week, a campaign organised by MoneyHelper and supported by the Federation of Small Businesses to help bring awareness to the importance of being open about money with friends and family and how to get expert advice if and when needed. The idea behind it is that money need not be a taboo conversation as it too often is, and this applies to business as much as it does to our personal finances, as evidenced by the British Business Bank’s campaign Business Finance Week which is also happening this week. And at Ultimate Finance we couldn’t agree more, and part of our mission is to talk about money because it is key to keeping businesses moving.
In business, liquidity dominates everything: cashflow is required not only to grow a business but also to keep it going from one day to the next. Therefore, having a robust cashflow strategy for every day operations, preparing for growth or protecting a business’ legacy is vital, and this is where debt can play an important role.
Sensibly planned-out debt is a strategic move that many successful businesses have relied on to meet their ambitions: accessing the right funding solution at the right time can tilt the scale and help to overcome challenging times or take advantage of an opportunity too good to miss.
What is the difference between good debt and bad debt?
Debt is an unescapable form of economics in our everyday personal finances, from credit cards to mortgages, overdrafts to payment plans, and it is only considered “bad” when it becomes unmanageable – be it inadvertently or through poor planning. Until then, debt is seen as a good and strategic means to an end and even as a factor of social status (home ownership and credit ratings helping to unlock further forms of finance for instance).
In business, however, debt can still sometimes be associated with its negative nature from the get-go and something not to be discussed openly, despite most businesses using it in one form or another: rent on premises, credit terms from suppliers, bank loans and overdrafts.
At Ultimate Finance we believe it is important that companies and their customers think more strategically about debt and finance so that it can be used to benefit more businesses on their journey to success. Funding helps businesses keep moving by taking the daily pressures off cashflow and enabling avenues to growth.
Bad debt exists in business too and comes in many forms such as a client suddenly unable to make a payment, fraud or funding that is not fit for purpose. Regardless of its nature, bad debt can have disastrous consequences for a business, especially if its cashflow requirements are not already met. However good forms of debt can help protect businesses from bad ones. Partnering with an expert lender can help protect against and mitigate any risks of bad debt, whether through Debtor Protection (where negative effects of unpaid invoices can be decreased substantially) or additional services such as credit control and payment collection.
The right funding partner
Business lending is a highly competitive market, and many lenders offer similar products with slightly different criteria. At Ultimate Finance, we work with an extensive Introducer network across the country to help business owners find a lender and a funding solution that will best meet their needs. Their role is key in helping match a business with the right funding depending on their unique requirements and ambitions, and they bring impartiality and expertise to the table by offering a market-wide view of current lending options.
We believe that what truly sets us apart from other lenders is our distinctive approach to service alongside the delivery of tailored and targeted funding solutions, which has seen us awarded the industry-leading score of 4.9 out of 5 on Trustpilot. With their facility, business owners also get access to dedicated support from our Relationship Management teams who ensure they get the most our of their facility with us, and have access to the wider teams within Ultimate Finance, be it Credit, Collections and other product specialists for any future requirements.
Are you ready to talk about money?
If you are an introducer looking to partner with us, you can register online in less than 10 seconds. If you would like to discuss how we can support your business, contact us online or via phone today.