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Debt is not a Dirty Word!

Any smart business owner will be aware that it’s often necessary to borrow money in order to help their company reach its full potential and, nowadays, there is more choice and flexibility than ever before when it comes to accessing the necessary funding to grow a business.  However, here in the UK, we have a traditional and deep-rooted aversion to owing money.  Some business owners never borrow money, others do so only when they are planning to increase their business, whilst some opt to use their personal funds or trade credit in order to achieve liquidity.

However, and increasing number of business owners who are bold enough to borrow money are looking for alternative finance of some sort, with the alternative finance industry now accounting for a significant proportion of small business lending. 

Thanks to technology and the internet, there are now a number of potential sources of funding that small business owners can take advantage of.  These include crowdfunding, peer-to-peer loans, revamped invoice funding, and unsecured online loans, to name a few.  It’s often the case that business owners who opt to use these alternative methods of funding discover that they often provide easier ways of repaying debt. 

Business owners can now automate payments via Direct Debit, whereas in the past, banks would usually only offer Direct Debit to businesses on condition of a bond.  Some altfi providers offer flexible payment plans on a daily, monthly, or ad hoc basis.  Making loan repayments using Direct Debit is quick and convenient, making repayment as painless as possible.  Properly managed borrowing brings benefits for business owners, making accounting easier to control and keep up to date at all times. 

The ability to receive and repay funds easily and quickly can mean the difference between business success and business failure, especially in fast-moving markets.  This enables business owners to stay current with industry developments and stay ahead of the game when it comes to competing in a crowded market and meet rapidly changing customer demands.

As Brexit approaches, some business owners may be reluctant to borrow money in such an uncertain economic climate, but those who do will equip their companies with valuable potential to weather Brexit, whatever the outcome. 

Whilst going into debt to grow your business may not be your first choice, if you take a responsible attitude and make sure you keep up to date with repayments, it may bring great rewards for you and your business in the future.  With the alternative finance market providing so many flexible options, borrowing for business in 21st Century Britain can lead to a brighter future.