Working Capital
Funding to smooth cash flow and cover the gap between money going out and money coming in, matched to how your business actually trades.
Where we see the most mismatched finance
Working capital is the area where we see finance go wrong most often. Two patterns come up again and again.
The first is a business taking a short-term, high-cost loan to solve a structural cash flow problem. The loan deals with the symptom, the immediate shortfall, but does nothing about the cause. When it ends, the problem returns, usually with more debt on top.
The second is a business being steered into a merchant cash advance when cheaper, better-suited options exist. It can look simple and fast, but the true cost is frequently much higher than it appears. If you have been offered one, it is worth understanding what it really costs before you sign.
The right working capital solution matches the cash flow cycle of your business.
Not the product that is quickest to arrange, or the one that pays the adviser most.
The ways to fund working capital
There is no single working capital product. The right answer depends on why the gap exists and how your money moves.
Invoice finance
A revolving facility or overdraft
A revolving facility or overdraft
Releases cash tied up in unpaid invoices as you raise them. Often the best fit when your customers pay on terms.
A revolving facility or overdraft
A revolving facility or overdraft
A revolving facility or overdraft
A flexible line you draw on and repay as cash flow rises and falls, for day-to-day swings rather than a one-off need.
A short-term loan
Merchant cash advance
Merchant cash advance
A lump sum for a specific, temporary need, used carefully and with a clear plan to repay.
Merchant cash advance
Merchant cash advance
Merchant cash advance
Repaid as a share of your card takings, suited to some retail and hospitality, but only where the cost genuinely stacks up.
Which of these fits, or whether the answer is a combination, is what we work out with you.
Cause first, then the solution
We look at the underlying cause of your working capital requirement before we identify a solution. A gap caused by fast growth needs a different answer from one caused by slow-paying customers or a seasonal dip, and treating them the same is how businesses end up with the wrong finance.
We are whole-of-market, every fee and commission is disclosed before you commit, and every deal is led by a principal. From the first conversation to the point your funds are released, you get on with running your business, and we deal with the lenders, the paperwork and the complexity.
In practice
FaceGym Richmond
Health and Beauty · £88,000 · Business Loan
A new franchisee was introduced to us by a trusted legal partner while setting up a FaceGym studio in Richmond. Start-up businesses often find it hard to borrow because they have no trading history, so we matched the director with a lender that understood the franchise model. The £88,000 loan covered the stock and equipment needed to open the doors, and the director is already planning a second studio.
"Thanks again for all your help through this journey. Looking forward to Studio 2!"
James Culley-Harris, Director
Talk to us about the cash flow gap
Tell us where the pressure is and how your business trades, and we will work out what is actually causing the gap and the right way to fund it. Not the quickest product, the right one.
Copyright - Goodman Corporate Consultancy Ltd
Goodman Corporate Finance is a trading style of Goodman Corporate Consultancy Ltd. Company no 5364029 Registered in England and Wales.
Registered office: 5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG.
Goodman Corporate Consultancy Limited is an FCA authorised Credit Broker and not a lender.
We typically receive a payment (s) or other benefits from the finance provider if you decide to enter into an agreement with them depending on the chosen provider and their commission or incentive models. Different lenders pay different amounts depending on different commission models. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.
Goodman Corporate Consultancy Ltd is Authorised and Regulated by the Financial Conduct Authority under number 733340.
Goodman Corporate Finance is registered with the ICO no. Z1828753.
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