Starting any business will always require an upfront investment of some kind. Along with your time, the main investment will always be cash. Even more so today, due to the ever-increasing costs of tube. To fund buying your materials and vehicles, you’ve probably already considered and even take advantage of ‘mainstream’ funding channels such as an overdraft, a business loan from your bank, a credit card and to open an account with your local scaffolding supplier. Allowing us to help you in arranging finance for your business is therefore extremely important.
A lesser-known way of financing these necessary purchases is leasing or asset finance. If you haven’t already considered asset finance, you should. There are numerous reasons why, however, the key reasons are; it keeps your ‘mainstream’ funding lines open such as the solutions we listed above. Keeping these funding options open and intact will allow you to handle cashflow issues far better. Another key benefit is from a budgeting point of view. Irrelevant of whether your business has just started, or you’ve been trading profitably for 10 years, budgeting is imperative. Using asset finance or leasing allows you to easily budget each month as all our payments are fixed throughout the duration of the finance term.
Personal Bank Account
The chief source of investment for your new company will usually be your personal bank account. However, as previously mentioned, due to the rising costs of tube, it’s incredible just how quickly your bank balance can diminish.
Arranging a business loan with a High Street bank is notoriously difficult; especially when the company you are trying to fund has no trading history. They will normally require some sort of collateral which involves putting a charge against a property or asset that you own. Clearly, you’ll have confidence in your business, but this option comes with a high level of risk!
Just like business loans, overdrafts are also arranged through your High Street bank. This ‘cash’ availability will be invaluable once your business is up and running. It is crucial to keep these funding lines open and available should you need to pay invoices, wages or bills at short notice.
Credit cards will always serve a practical purpose within any business. As fantastic and flexible as credit cards can be, any new business with no trading history will find it exceedingly difficult to be accepted for any credit card with an attractive interest rate. As with bank overdrafts, it is key to keep these funding options available for your business once established.
I’ve discussed bank accounts, overdrafts and credit cards, which brings me to leasing, also known as ‘asset finance’. As I have already demonstrated, keeping existing funding lines available is crucial. Leasing allows you to do precisely that. A lease is simply a low, fixed payment which allows for better budgeting within any type of business. To see how the leasing process works, click here.
Your Own Equipment
The benefit for a scaffolding contractor to lease their materials and vehicles as opposed to buying or hiring them is simply because a scaffolding business essentially operates using the same model. They hire their kit to customers who in turn pay rental for their services. A lease can be scheduled to run concurrently with the length of the contract or contracts that you are working on presently. This often allows you to win more contracts. This is because you aren’t having to pay (what is normally a more expensive option) to hire through a scaffolding supplier.
We Can Help
Scaffold Finance specialise in arranging finance for the scaffolding industry. Having arranged finance for an array of scaffolding companies, from new start businesses through to large established operations, Scaffold Finance have relationships with all the major scaffolding suppliers. We have worked with Generation, George Roberts, TRAD and Actavo, among many others. With our team of experienced leasing experts, Scaffold Finance should be your first port of call for anything finance based.
Email firstname.lastname@example.org or call 01494 506 383 to find out more about how we can help your business grow.