Funding my existing business
I need to increase my stock
Increasing your stock is one way of growing your business. However, be careful about how much capital you have tied up in stock. In general, the more times you can turn your stock over in a year, the more efficient and profitable your business will be. You should avoid holding obsolete or slow moving stock.
Try to keep your stock levels as low as possible without impacting on the efficiency of your business. Some of the ways you can do this are:
- Buying some of your stock on a consignment basis
- Arranging with your suppliers to hold stock for you with the capability to deliver within a day or so of your order
- Keeping good records on your stock position so you know exactly when you need to order replacement stock
- Only purchasing what you know you need in the immediate future - unless there are significant quantity discounts for buying volume stock.
Once you’ve decided to purchase stock, if you don’t have the cash to pay for it, we can help you consider your finance options. Some of the considerations we’ll work through with you are: How long before you can clear or at least reduce the debt? Can you do it in the next 6 weeks or so? Will it take longer?
I can pay it off quickly, say within 60 days
If you only need finance for a shorter period of time, choose one of our short term finance options - an overdraft or credit card.
An overdraft facility generally has a lower interest rate than a credit card and flexible minimum and maximum borrowing limits. However keep in mind that you may be able to take advantage of an interest free period on some credit cards and avoid paying interest altogether.
You may also be able to free up your working capital by using Invoice finance.
Review your short term options
I won’t be paying it off quickly
If you need finance for a longer period, choosing one of our long term borrowing solutions may be the answer.
Review your options
Things you should know
- Credit facilities are subject to application and the bank's normal lending assessment criteria.
